• The index treads water near the 102.00 region on Monday.
• Markets’ attention remains on the upcoming FOMC event.
• The Fed is expected to hike by 25 bps on Wednesday.

The greenback, in terms of the USD Index (DXY), exchanges gains with losses in the 102.00 neighbourhood at the beginning of the week.

USD Index remains consolidative ahead of FOMC

The index looks to add to the recovery emerged in the second half of last week and flirts once again with the 102.00 barrier amidst vacillating risk appetite trends and steady cautiousness ahead of the upcoming FOMC gathering (February 1).

On the latter, investors have already priced in a 25 bps rate raise, although expectations around the next steps when it comes to the rate path as well as a potential emergence of a pivot in the monetary stance are expected to keep driving the sentiment in the next couple of sessions.

In the US data space, the Dallas Fed Manufacturing Index and short-term bill auctions will be the only events later in the NA session.