- The DXY index remains defensive below the 96.00 level.
- US yields correct a bit lower from recent highs.
- The release of the FOMC minutes will focus investors’ attention on Wednesday.
The US dollar index DXYwhich measures the strength of the dollar against a basket of major currencies, extends the previous day’s retracement below the 96.00 level during the European session on Wednesday.
DXY Index focuses on FOMC and risk trends
The DXY index down for the second day in a row and continues to challenge the 96.00 zone due to persistent risk appetite as well as the pullback in US yieldsduring the European session on Wednesday.
Indeed, US yields are under slight downward pressure across the curve.
Meanwhile, the dollar continues having difficulty retaining its strength amid positive news from the Russia-Ukraine frontalthough not without growing caution, which has been sustaining the rally in risk appetite in recent hours.
On the US economic calendar, the release of the FOMC minutes will focus the attention of investors during today’s American session. Prior to the FOMC release, the focus will be on retail sales data and weekly MBA mortgage applications.
Relevant DXY US Dollar Index Levels
At time of writing, the DXY index is down 0.15% on the day, trading at 95.84. A break above 96.43 (14 Feb high), would open the door to 97.44 (28 Jan high) and 97.80 (30 Jun 2020 high). On the other hand, the next support appears at 95.17 (low Feb 10), followed by 95.13 (low Feb 4) and 94.62 (low Jan 14).
Source: Fx Street
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