US dollar index consolidates gains after Fed’s minutes

The US dollar dropped modestly in the currency market after the release of the FOMC minutes from the latest meeting but it remained around where it was before the minutes, consolidating gains versus the euro and the yen and mostly flat against commodity currencies. 

The US Dollar index, which gauges the US dollar against its main competitors, is up 0.22% at 97.86. Earlier during the American session it peaked at 97.99, the highest level since March. The DXY is rising for the sixth time out of the last eight trading days. 

The FOMC minutes showed that the decision to keep rates unchanged was a “close call”. According to the document, it was noted that a reasonable argument could be made either for an increase in rates or for waiting for additional information on the labor market and inflation. Several members that supported the view to keep rates unchanged stated that “the decision at this meeting was a close call.” Financial markets moved modestly after the minutes.

Following the release, the US dollar index dropped to 97.60 but rebounded rising again toward daily highs. It was consolidating, about to post the highest close in seven months. 

Relevant levels

To the upside, resistance levels could be seen at 98.00 (psychological /daily high area), 98.59 (Mar 3 high) and 99.00 (psychological). On the downside, the initial support might now lie at 97.69, followed by 97.40 (daily low) and 97.15 (Oct 6 high).