After recording fresh 2017 lows near 93.80 earlier in the session, the US Dollar Index has now returned to the 94.00 area although it perspective still remains in the bearish camp.
US Dollar holds on to 94.00
The index is showing no reaction so far today, trading in levels last seen over a year ago in the 93.80/94.00 band and with little-to-none motives to attempt a decent recovery for the time being.
The vacuum of data and events in the US docket today is not helping the buck either, leaving it exposed to further downside amidst the increased demand for its peers.
DXY is also deriving weakness from the persistent drop in US yields, with the 10-year reference currently hovering over the 2.24% area.
In the meantime, US politics keeps driving the sentiment around USD, seconded by rising scepticism over the ability of the Federal Reserve to raise rates for the third time by year-end. According to CME Group’s FedWatch tool, the probability of a rate hike at the December meeting is at 45%.
US Dollar relevant levels
The index is losing 0.15% at 93.94 and a break below 93.84 (2017 low Jul.21) would open the door to 93.41 (low Jun.8 2016) and finally 93.03 (low Jun.23 2016). On the upside, the next hurdle emerges at 95.12 (high Jul.20) seconded by 96.23 (23.6% Fibo of the 2017 drop) and finally 96.25 (10-day sma).
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