• The index keeps treading water around the 102.00 region.
• Markets remain largely side-lined ahead of key events next week.
• Weekly Mortgage Applications, EIA report only due later in the day.

The greenback, in terms of the USD Index (DXY), extends the multi-session consolidative mood around the 102.00 zone on Wednesday.

USD Index looks cautious ahead of FOMC

The index trades slightly on the defensive in the sub-102.00 zone against the backdrop of the generalized range bound theme in the global markets, all in light of the FOMC gathering due on February 1.

On the latter, and while a 25 bps interest rate raise is almost fully priced in, market participants are expected to closely follow the subsequent press conference by Chief Powell in search for any hint of the future moves by the central bank, particularly following the current opposite views from investors – who keep favouring a pivot in the Fed’s policy – and the persistent hawkish stance from policy makers.

Nothing to write home about in the US data space, as only the weekly Mortgage Applications tracked by MBA are only due seconded by the EIA’s report on US crude oil stockpiles