US Dollar Index eases from tops near 95.50 ahead of FOMC

• The index remains bid and moves further north of the 95.00 handle.
• Yields of the key US 10-year note trades on a weak note near 3.15%.
• US Housing Starts, Building Permits came in below expectations.

After bottoming out in the 94.80 region on Tuesday, the greenback managed to regain some buying interest and push the US Dollar Index (DXY) back above the 95.00 mark.

US Dollar Index looks to FOMC

The index is up for the second consecutive session today, retaking the mid-95.00s although losing some momentum soon afterwards.

Unabated concerns over the Italian political area plus omnipresent back and forth around the Brexit talks gave some extra oxygen to the buck as of late, helping DXY to rebound from recent multi-day lows.

In the data space, and with market participants waiting for the FOMC minutes, Housing Starts contracted 5.6% MoM in September, or to 1.201M units, while Building Permits also shrunk at a monthly 0.6%, or 1.241M units.

Later in the session, the EIA will publish its weekly report on US crude oil inventories ahead of the release of the FOMC minutes.

US Dollar Index relevant levels

As of writing the index is gaining 0.25% at 95.32 and a breakout of 95.46 (high Oct.17) would target 96.16 (high Oct.9) en route to 96.98 (2018 high Aug.13). On the other hand, immediate support is located at 95.03 (21-day SMA) followed by 94.79 (low Oct.12) and finally 94.20 (38.2% Fibo of the 2017-2018 drop).