US Dollar melts to daily lows near 100.00

The greenback – tracked by the US Dollar Index – is now rapidly losing its shine, surrendering initial gains and returning to the vicinity of the critical support at 100.00 the figure.

US Dollar holding on to 100.00

The index has plummeted to the 100.00 neighborhood today after the recent bullish attempt seems to have run out of steam in the 100.60/70 band.

Without any particular catalyst on sight for the correction lower – or comments by D.Trump – declining yields in the US money markets seem to be behind the move, with the 10-year benchmark extending the drop to the 2.34% region, where it apparently found some support.

Nothing noteworthy in the US docket today, while Initial Claims and Wholesale Inventories are due tomorrow along with speeches by St. Louis Fed J.Bullard (2019 voter, neutral) and Chicago Fed C.Evans (voter, dovish).

US Dollar relevant levels

The index is retreating 0.19% at 100.20 and a breach of 99.91 (low Feb.7) would open the door to 99.72 (100-day sma) and then 99.19 (low Feb.2). On the flip side, the next hurdle lines up at 100.69 (high Feb.7) followed by 101.02 (high Jan.30) and finally 101.37 (55-day sma).