US Dollar plummets to lows near 89.70 on Trump’s headlines
- DXY has rapidly dropped to fresh lows near 89.70.
- US CPI matched consensus during February, up 2.2% YoY.
- USD lower after President Trump fired Secretary of State R.Tillerson.
The greenback, in terms of US Dollar Index (DXY), has now dipped into the negative territory and is testing fresh lows in the 89.80/70 band.
US Dollar weaker on data, Tillerson
The index took a blow after US newspaper ‘The Washington Post’ announced President Donald Trump fired Secretary of State Rex Tillerson earlier in the US morning, quickly losing ground to the 89.70, where it is now looking to come back. Trump said CIA Director M.Pompeo will replace Tillerson.
In addition, February’s inflation figures tracked by the CPI failed to spark any bullish reaction in the buck, as consumer prices came in as expected. In fact, headline CPI rose at annualized 2.2% and Core CPI 1.8% YoY. On a monthly basis, CPI and Core CPI both gained 0.2%.
In the meantime, DXY has reverted the positive start and is now down for the third consecutive session, finding some decent support around 89.80, area coincident with the 21-day sma.
The greenback will face the next risk event tomorrow, with the publication of Retail Sales for the month of February (+0.3% MoM exp.).
US Dollar relevant levels
As of writing the index is losing 0.16% at 89.78 and a break below 89.43 (low Mar.7) would open the door to 88.44 (low Jan.26) and finally 88.25 (2018 low Feb.16). On the flip side, the next hurdle is located at 90.57 (high Feb.8) seconded by 90.93 (high Mar.1) and finally 91.00 (high Jan.18).
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.
