The US Dollar Index (DXY) held above 102.00 after a modest Asian-session uptick on Thursday, staying near the two-week high set on Wednesday as markets awaited fresh US data for direction. The advance US GDP report and the Personal Consumption Expenditures (PCE) Price Index were due later in the day, with attention on whether readings validate expectations of a December rate rise. Any downside reaction to weaker numbers was framed as potentially contained following the Federal Reserve’s hawkish hold.
Federal Reserve Decision and Geopolitical Developments
The Fed kept rates unchanged at the end of the October meeting in a 10-2 vote, with Governor Lisa Cook and Cleveland Fed President Beth Hammack favouring a quarter-point increase, while the chair cited persistent inflation and geopolitical risks. Geopolitics also remained in focus: US Vice President JD Vance reportedly wrote to Mohsen Rezaei as Washington weighed renewed military action after the November 3 midterm elections, even as Qatar-led mediation sought to reopen talks. Technically, support was flagged around 102.10 near the 100-period EMA and 38.2% Fibonacci, with further levels at 102.09, 101.97, 101.85 and 101.67; resistance was seen at 102.25 and 102.49, with 102.55 a nearby barrier.
