US dollar index tumbles toward 100.00
|The US dollar dropped sharply across the board ahead of Friday’s inauguration of Donald Trump. Greenback stabilized for a few hours after Theresa May speech but then, near the end of the American session resumed the decline.
Yesterday’s gains were short-lived as the bearish tone over the US dollar in the short-term prevails amid uncertainty surrounding Trump’s administration. Today the US dollar index broke below the key support (now resistance) located at 100.60.
The DXY bottomed at 100.23, the lowest since December 8 and it was about to end the day hovering around 100.30, down 1.25% for the day.
Among currencies, the Pound outperformed, having the best performance in years after Theresa May Brexit speech. The yen also climbed in the market, boosted by a decline in equity prices and a recovery in US bonds. Investors now focus on Thursday’s ECB meeting and on Friday’s Donald Trump inaugural speech.
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