US Dollar firmer, advances to 95.30

The greenback, gauged by the US Dollar Index, has recovered the smile on Tuesday, returning to the 95.30 area, or daily highs.

US Dollar keeps the focus on Fed

The index is netting an even week for the time being, recovering the 95.30 area or weekly tops amidst rising speculations on the potential move by the Federal Reserve not only at this month’s meeting but also in the next months.

In addition, USD has suffered the expected dovish tone from FOMC’s L.Brainard on Monday, who advocated for ‘prudence in tightening monetary policy’ although she argued that the economy is gradually advancing towards the Fed’s targets.

Extremely light docket in the US today saw the NFIB Business Optimism Index coming in at 94.4 for the month of August, a tad lower than July’s 94.6.

US Dollar relevant levels

The index is gaining 0.20% at 95.29 facing the immediate hurdle at 95.58 (high Sep.9) followed by 95.84 (50% Fibo of July-August drop) and finally 96.25 (high Sep.1). On the other hand, a breach of 94.81 (support line off 2016 low) would open the door to 94.44 (low Sep.8) and finally 94.05 (low Aug.18).