US DOLLAR INDEX LOOKS OFFERED AND APPROACHES 106.00 AHEAD OF DATA

  • The index adds to Wednesday’s losses near the 106.00 area.
  • US yields attempt a mild rebound following the FOMC event.
  • Advanced Q2 GDP, Initial Claims come next in the docket.

The greenback, in terms of the US Dollar Index (DXY), extends the bearish note to the 106.00 neighbourhood on Thursday, where a decent contention seems to have emerged.

US DOLLAR INDEX NOW LOOKS TO GDP

The index is down for the second session in a row as market participants continue to digest the somewhat unexpected dovish tone from the FOMC gathering on Wednesday.

It is worth recalling that the Federal Reserve raised the Fed Funds Target Range by 75 bps to 2.25%-2.50%, as broadly anticipated, although Chief Powell dialed down the probability of further large hikes later at his press conference.