• The index remains under pressure near the 100.00 zone.
• Risk appetite trends appear mixed at the beginning of the week.
• The NY Empire State Index will be the sole release on Monday.

The greenback, in terms of the USD Index (DXY), navigated a tight range close to the key 100.00 neighbourhood at the beginning of the week.

USD Index is cautious ahead of the FOMC and looks at risk trends

The index appears to have met some initial resistance around the 100.00 region so far on Monday, regaining little composure following Friday’s lows in the 99.60/55 band, an area last traded in late April 2022.

The persistent offered bias in the dollar has been particularly magnified in the wake of the release of US inflation figures for the month of June (July 12), in tandem with rising speculation that the Fed might end its current hiking cycle sooner rather than later.

In addition, mixed results from Chinese fundamentals published during early trade also collaborated with the vacillating price action in the FX universe on Monday.

On the speculative front, USD net longs dropped to levels last seen in late May, according to the latest CFTC Positioning Report for the week ended on July 11.