US Dollar parked around 95.60, multi-month lows

Pablo Piovano FXStreet

The greenback, measured by the US Dollar Index, stays under pressure so far this week, currently navigating the area of multi-month lows in the 95.60/50 band.

US Dollar depressed on CB-speak, ‘Trumpcare’

The downside momentum around the buck remains unabated so far today, extending its losses for the third consecutive session to the area of the mid-95.00s, levels last seen in early October 2016.

Recent and unexpected hawkish comments from G10 central bankers (specially ECB's Draghi and BoE's Carney) at the ECB Forum in Portugal hurt the greenback and prompted sellers to stay in the markets, making almost impossible any attempt of genuine recovery.

In addition, the American Healthcare Act bill (aka ‘Trumpcare’) remains delayed in the Senate as Republicans are still pretty divided on it. The US political scenario is poised to be a significant drag for the buck in the next months and has greatly collaborated with the deterioration of the sentiment around USD practically since Trump took office.

While the index is losing ground for the third session in a row, the negative momentum appears unchanged while below the short-term resistance line off April’s top near 101.30, today around 97.35.

Data wise in the US, the final print for Q1 GDP is due along with the usual weekly report on the labour market and the speech by St. Louis Fed J.Bullard (2019 voter, centrist).

US Dollar relevant levels

The index is losing 0.20% at 95.59 facing the immediate support at 95.51 (2017 low Jun.29) followed by 94.95 (low Sep.22 2016) and finally 94.05 (low Aug.18 2016). On the flip side, a breakout of 96.31 (high Jun.28) would target 96.79 (10-day sma) and then 97.56 (high Jun.15).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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