The selling bias around the greenback stays unabated so far today, dragging the US Dollar Index to daily lows in the 99.90 region.
US Dollar focus on Fedspeak
The index came under renewed downside pressure on Tuesday, challenging yesterday’s lows in the 99.90 region following the European open.
USD remains heavy, especially after the Fed’s dovish hike last Wednesday, struggling to gain some attention and holding onto the 100.00 neighbourhood.
Monday’s hawkish comments from FOMC’s Evans and Harker asserted the likeliness of two (and even three) more rate hikes this year if economic conditions accompany, although the buck remained apathetic and within familiar ranges.
Absent releases today in the US docket, the focus of attention will be on the speeches by New York Fed W.Dudley (permanent voter, centrist), Kansas City Fed E.George (2019 voter, hawkish) and Cleveland Fed L.Mester (2018 voter, hawkish).
Further weakness/consolidation around USD is not ruled while market participants keep waiting for another strong catalyst (Trump’s fiscal plans?) or the market regains confidence in the ability of the Fed to accomplish its objective this year (two more hikes).
US Dollar relevant levels
The index is losing 0.23% 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 100.91 (100-day sma) and then 100.95 (55-day sma).