The offered bias around the greenback stays unabated at the beginning of the week, now dragging the US Dollar Index to fresh lows in sub-100.00 levels.
US Dollar still hurt by FOMC
The index is still suffering the dovish rate hike by the Federal Reserve at its meeting last week, as the Committee failed to signal a faster normalization of the monetary conditions despite lifting the Fed Funds by 25 bp.
Markets’ disappointment is pushing the buck to its fourth session with losses, trading back to levels last seen in early February and opening the door for a potential visit to YTD lows in the vicinity of 99.20.
Nothing relevant from today’s US docket, with the Chicago Fed National Activity Index only due later along with the speech by Chicago Fed C.Evans (voter, dovish).
From the positioning perspective, USD speculative net longs have ticked higher to 2-week tops during the week ended on March 14, as per the latest CFTC report.
US Dollar relevant levels
The index is losing 0.21% at 99.93 facing the next support at 99.19 (2017 low Feb.2) followed by 96.94 (low Nov.4 2016) and finally 95.91 (low Nov.9 2016). On the flip side, a breakout of 100.37 (61.8% of the February-March up move) would open the door to 100.89 (100-day sma) and then 101.00 (55-day sma).