US Dollar around 92.40 ahead of FOMC

• The index stays on the defensive around the 92.40 region.
• Yields of the US 10-year note off highs around 2.98%.
• US ADP report came in at 204K in April vs. 200K expected.

The greenback, measured by the US Dollar Index (DXY), remains within the negative territory albeit managing well to keep the trade above the 92.00 milestone.

US Dollar now looks to FOMC, NFP

The index remained apathetic after the ADP report showed the US private sector added 204K jobs during last month, a tad above the forecasted 200K and down from March’s 228K (revised from 241K).

The greenback’s upside seems to be taking a breather today and it is expected to extend the rangebound theme at least until today’s FOMC meeting due in later in the European evening.

Market consensus sees the Committee on hold at today’s meeting, while speculations on a move on rates by the Fed at the June meeting have been picking up pace as of late.

US Dollar relevant levels

As of writing the index is losing 0.12% at 92.36 facing initial contention at 91.97 (200-day sma) seconded by 91.70 (50% Fibo of 95.15-88.25) and finally 91.29 (10-day sma). On the upside, a breakout of 92.55 (high May 1) would open the door to 92.64 (2018 high Jan.10) and then 93.68 (78.6% Fibo of 95.15-88.25).