FOMC Power up the US Dollar?

The Federal Reserve possibly announce the monetary policies unaffected but might suggest tapering of the asset purchase programme. Moreover, the Fed Chair Jerome Powell possibly have a tougher time dwell on rising inflation worries.

Furthermore, if the Fed chair applauds the swift economic progress, then possibly investors might perceive it as a hint of a hawkish shift. This shift might strengthen the US dollar in the near term. On the other hand, the equity market might have a negative impact due to this conclusion.

However, If the Fed chair continues to emphasize to witness many millions more coming back to work along with economic stability before deciding on any kind of tightening process. In this case, the US dollar might get weak. It might suggest more money-printing for the longer-term period.

Based on the technical analysis, the 90.7 level seems to be the immediate support level, where the bear might take a breath. Sustaining below the 90.7 level, possibly add further weakness, which could lead to a 90.14 level in the near-term period. However, the top 91.7 level proved to be the key resistance level before it develops the bull flag.

USD Index