- The DXY index rebounds from recent lows near the 105.00 level.
- Investors appear to be staying on the sidelines ahead of the FOMC meeting.
- US real estate will be in the spotlight later in the session.
The Dollar, as measured by the DXY Dollar Index, reverses some of the pessimism observed the previous day and returns to approach the 105.20 level at the start of the European session on Tuesday.
DXY index seems well supported around 105.00
The DXY index rebounds and leaves behind two consecutive sessions of losses in what appears to be a trend reversal on Tuesday.
Meanwhile, the Dollar seems well supported around the 105.00 region for the moment, while cautious trading is expected to prevail until at least Wednesday’s FOMC event.
Regarding the latter, the consensus among investors is that the Federal Reserve will keep its interest rate unchanged, although the central bank’s future guidance will be the focus during Fed Chairman Jerome Powell’s press conference.
On the US economic agenda for today, data on housing starts and construction permits will be published.
What can we expect around the DXY index?
The DXY index appears to have found some firm support around the 105.00 region, as market participants prepare for the FOMC event on September 20.
Meanwhile, support for the dollar continues to come from the good health of the US economy, which at the same time seems underpinned by the narrative of a tighter for longer stance from the Federal Reserve.
Relevant DXY Index Levels
At the time of writing, the DXY index is up 0.11% on the day, trading at 105.18. The next bullish barrier lies at 105.43 (September 14 high) ahead of 105.88 (March 8 high) and 106.00 (round level). On the other hand, breaking 104.42 (September 11 low) would open the door to 103.03 (200-day SMA) and then 102.93 (Aug 30 low).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.