US Dollar subdued near 97.30 post-ADP, FOMC on sight

The greenback, tracked by the US Dollar Index, keeps the red territory today although it seems to have found some support near 97.20 so far.

US Dollar in 3-week lows, eyes on FOMC

The downbeat sentiment in the buck had another round today following latest US election polls, which showed Republican candidate D.Trump is up by a slim margin vs. his Democrat adversary H.Clinton.

Collaborating with the selling mood around USD, the ADP report showed the US private sector has added less jobs than initially estimated during October, 147K vs. 165K initially forecasted. Furthermore, September’s reading was revised higher to 202K from 154K.

Expectations of Fed’s move by end 2016 have somewhat ebbed although they still remain supportive of a stronger USD. According to CME Group’s FedWatch tool based on Fed Funds future prices, the probability of such an event is just below 70% today.

Later in the session, the FOMC meeting is expected to deliver a hawkish tone, adding to the case for higher rates by year-end.

US Dollar relevant levels

The index is losing 0.45% at 97.32 facing the next support at 96.31 (55-day sma) followed by 95.83 (200-day sma) and finally 95.53 (6-month support line). On the upside, a breakout of 99.09 (high Oct.25) would aim for 99.95 (high Jan.21) and then 100.60 (high Dec.3).