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US Dollar depressed, 92.00 on sight

The US Dollar Index, which gauges the greenback vs. a basket of its main rivals, remains on the defensive so far today, trading in the vicinity of the 92.00 handle, or 15-month lows.

US Dollar attention to 92.00

The index has resumed the downside after Chair J.Yellen failed to give markets fresh reasons to buy the greenback in her latest speech at the Jackson Hole Symposium.

The buck remains offered and on its way to close the sixth consecutive month with losses, shedding more than 11% since tops in the 103.80 area seen early in the year.

Most of the USD’s decline has been on the back of increasing political uncertainty around the White House, scepticism over the ability of the Fed to deliver a third rate hike this year and the unwinding of the Trump-trade, as the current administration keeps delaying its plans for a tax reform and further fiscal stimulus.

On the data front, home prices gauged by the S&P/Case-Shiller index are due along with the speech by Chicago Fed C.Evans (voter, centrist).

US Dollar relevant levels

As of writing the index is losing 0.10% at 92.08 and a breakdown of 91.91 (2016 low May 3) would open the door for 91.51 (low Jan.15 2015) and finally 87.63 (low Dec.16 2014). On the flip side, the next up barrier aligns at 92.54 (high Aug.28) followed by 93.08 (10-day sma) and finally 93.21 (21-day sma).

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