US Dollar rebounds post-FOMC, remains below 97 ahead of Yellen's remarks

Following the decision by the Federal Reserve to hike its benchmark interest rate by 25 basis points for the second time this year, the US Dollar Index, which tracks the greenback against a basket of six trade-weighted peers, started to recover its post-CPI losses. As of writing, the index is at 96.60, still down 0.37% on the day.

In its statement, the FOMC said that the longer-run rate hike path remain unchanged and it's still looking to make another hike before the end of the year. Although the inflation is expected to remain below the target rate of 2%, near-term risks to the economy appear "roughly balanced" according to the official statement. Regarding the unemployment, the Committee forecasts the rate to dip to 4.2% through 2019.

• Fed raises rates by 25 bps; second hike of 2017
• FOMC's decisions regarding monetary policy implementation - Jun 14, 2017

Now the markets will be closely following Chairwoman Yellen's statements and the following press conference.

Technical levels

97 (psychological level) remains as the first hurdle for the index ahead of 97.50 (May 26 high) and 98 (May 18 high/psychological level). On the downside, 96.30 (daily low) could be seen as the initial support followed by 95.90 (Nov. 11 low) and 95 (psychological level).