- The DXY is under pressure and is withdrawn to the 94.20 region.
- The US headline CPI rose 5.4% year-on-year in September, above consensus.
- The FOMC Minutes will be published later in the American session.
The US Dollar Index (DXY), which measures the dollar against a basket of its main competitors, maintains the sell bias unchanged around the 94.30 / 20 zone at midweek.
The US dollar index now looks at the FOMC
Sellers have returned to the market and are now dragging the index into negative territory for the first time after two consecutive daily gains, including the new 2021 highs of 94.56 recorded on Tuesday.
The downward movement in the dollar follows the pullback in US yields, with the 10-year yield hovering around the 1.57% region while the front end of the curve is trading near the 0.34% zone. .
The index briefly jumped to mid-94.00 shortly after CPI-tracked inflation figures rose to 5.4% annualized in September (down from 5.3% exp), while the underlying figure matched estimates at 4.0% year-on-year. However, the bullish attempt lost steam and returned to the 94.30 / 20 region shortly thereafter.
Technical levels
Now the index is losing 0.25% at 94.27 and a break above 94.56 (Oct 12, 2021 high) would open the door to 94.74 (Sept 25, 2020 monthly high) and then 94.76 (200 SMA). weeks). On the other hand, the next downside barrier emerges at 93.77 (20-day SMA) followed by 93.67 (monthly low on October 4) and finally 92.98 (weekly low on September 23).
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