US Dollar under pressure around 94.00

Pablo Piovano FXStreet

The greenback, in terms of the US Dollar Index, is navigating a tight range in the 94.00 neighbourhood following yesterday’s sharp pullback to the 93.90/85 band.

US Dollar depressed near 13-month lows

The index remains weak, trading in the red territory for the second consecutive week and already shedding almost 10% since January’s 15-year tops in the 103.80 area to yesterday’s slump to the vicinity of 93.90.

DXY plummeted on Thursday in response to comments by special counsel Robert Mueller regarding his investigations on the Russia-gate, triggering yet another conflict around the US President (and his family).

In addition, USD suffered the unexpected hawkish-ish (not dovish at least) tone from President Draghi at his press conference yesterday, where the ECB stayed on hold once again and reiterated that inflation pressures in the region remain subdued. Draghi, however, said the Governing Council could re-assess the current monetary conditions at some point in the autumn.

Yields of the 10-year benchmark have managed to bounce off Thursday’s lows in sub-2.23% levels, although still remain in the lower end of the recent range after testing 2.40% earlier in the month.

US Dollar relevant levels

The index is losing 0.05% at 94.03 and a break below 93.89 (2017 low Jul.20) 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).

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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