US Dollar accelerates the downside to 89.40
|The US Dollar Index (DXY), which measures the buck vs. a basket of its main rivals, is extending the drop to the 89.40 region, or fresh +3 year-lows.
US Dollar weaker on Mnuchin
DXY is down for the sixth consecutive week so far, losing around 6% since November’s tops above the 95.00 handle and almost 14% since 14-year peaks in the 103.80 region seen a year ago.
Uncertainty in the US political arena – government shutdown, back & forths between Republicans and Democrats, US protectionism – has been the leitmotif of the Dollar’s decline since Trump took office and has been accentuated today after S.Mnuchin favoured a weaker USD at the WEF in Davos.
In the data space, advanced Markit’s manufacturing PMI came in above estimates at 55.5 for the current month, while December’s existing home sales and the usual weekly report on US crude oil supplies by the EIA are due later in the NA session.
US Dollar relevant levels
As of writing the index is losing 0.77% at 89.40 and a break below 89.00 (psychological level) would expose 87.64 (low Dec.16 2014) and finally 84.48 (low Oct.15 2014). On the upside, the next barrier aligns at 90.70 (high Jan.22) seconded by 90.98 (high Jan.18) and then 92.64 (high Jan.9).
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