The dollar index remains offered around 107.50 ahead of the Fed statements

• The index is still unable to reverse Tuesday’s pessimism so far.
• US yields give up some of the recent advance.
• The Richmond Fed Index and Fedspeak are next on the agenda.

The dollar index (DXY)which measures the dollar against a basket of its main competitors, remains defensive near 107.50 on Tuesday.

DXY attentive to the words of the Fed and the FOMC Minutes

The dollar’s recent bullish momentum seems somewhat dampened in the first half of the week after Monday’s unsuccessful attempt to break above the 108.00 barrier.

The daily dollar correction is also accompanied by a small decline in US yields across the curve, all amid generally improving sentiment in the risk space.

Later in the NA session, the only noteworthy release will be the Richmond Fed’s manufacturing index. In addition, Cleveland Fed’s L. Mester (voting, hawkish), Kansas Fed’s E. George (voting, hawkish) J. Bullard of the J.Bullard Fed (voting, hawkish), will also be speaking.

What to keep in mind around the dollar

The dollar wobbled just ahead of the 108.00 barrier earlier in the week, triggering a corrective move soon after, to the pair than the recovery of the space linked to the risk.

Although the Fed’s hawkish speech keeps the pivot narrative in the freezer, upcoming results in US fundamentals will likely play a key role in determining the chances of a slower pace of the Fed normalization process. Fed in the short term.

Relevant USD Index Levels

Now, the index is back 0.24% to 107.50 and a break of 105.34 (15 Nov monthly low) would open the door to 105.17 (200-day SMA) and finally 104.63 (10 Aug monthly low). On the other hand, the next bullish barrier lies at 107.99 (weekly high Nov. 21), followed by 109.19 (100-day SMA) and then 110.68 (55-day SMA).