- DXY rises even higher and is approaching 92.70.
- The flash US trade balance showed the deficit widened to $ 91.2 billion.
- Investor attention remains on the FOMC event later Wednesday.
The US Dollar Index (DXY), which tracks the dollar against a basket of its main competitors, accelerates gains to the area above 92.60 on Wednesday.
US Dollar Index Offered Before FOMC
The index is now trading on a firmer tone and is managing well to regain more ground near 92.70 as the FOMC meeting approaches.
Helping with the dollar’s bullish momentum, US 10-year benchmark yields manage to break above the 1.26% level after recent lows, although the upside remains so far limited by the 1.30% hurdle.
On the US calendar, advanced figures for the goods trade balance showed that the trade deficit widened to $ 91.21 billion during June. Previous MBA mortgage applications increased 5.7% in the week ending July 23.
Later on, all the attention will be on the FOMC event, where market participants are expected to closely follow any signs of the timing of the QE reduction, the outlook for inflation and possible interest rate hikes sooner than later. provided.
Relevant levels
Now, the index is gaining 0.20% at 92.65 and a break above 93.19 (July 21 monthly high) would open the door to 93.43 (March 21, 2021 high) and finally 94.00 (round level). On the other hand, the next downward barrier is at 92.31 (weekly low on July 27) followed by 92.00 (monthly low on July 6) and then 91.51 (weekly low on June 23).
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