US Dollar tumbles further to 89.40 ahead of US CPI

The selling bias around the buck gathers extra steam today.
DXY trades around the 89.40 region, or fresh 2-week lows.
US CPI figures for the month of March and FOMC minutes next on tap.

Pablo Piovano FXStreet

The greenback, measured by the US Dollar Index (DXY), is accelerating the weekly leg lower and is flirting with fresh weekly lows around 89.40.

US Dollar looks to CPI, FOMC

The index is retreating for the fourth consecutive session on Wednesday amidst alleviated concerns over the US-China trade dispute, a continuation of the bid tone around the Yen and fresh demand for EUR following recent hawkish views from the ECB.

In addition, geopolitical effervescence involving Syria, the US and Russia keep bolstering the demand for safe haven assets, like the Japanese Yen, therefore dragging USD/JPY to lower levels, all in detriment of the buck.

Looking ahead, March’s inflation figures tracked by the CPI are next of relevance in the US docket, seconded by the publication of the FOMC minutes of the March meeting.

US Dollar relevant levels

As of writing the index is losing 0.13% at 89.50 facing the next support at 89.41 (low Mar.7) seconded by 88.94 (low Mar.27) and then 88.25 (2018 low Feb.16). On the other hand, a breakout of 90.60 (high Apr.6) would open the door to 90.89 (38.2% Fibo of 95.15-88.25) and finally 90.93 (high Mar.1).

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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