US Dollar weaker post-ISM, around 98.80

The US Dollar Index, which tracks the buck vs. its main rivals, is losing momentum today, once again breaching the 99.00 support and testing lows in the 98.80 region.

US Dollar offered post-ISM

The index has quickly reverted the initial positive tone following lackluster results from the US docket, where Personal Income/Spending, inflation figures gauged by the PCE and the key ISM Manufacturing have all missed forecasts for the month of April.

However, dip-buyers seem to have emerged around 98.80 for the time being, all amidst very thin trade conditions due to the Labor Day holiday in most of the markets.

USD is poised to trade on a cautious stance in the very near term in light of the upcoming FOMC meeting on Wednesday. Currently, CME Group’s FedWatch tool is seeing the probability of a rate hike at just below 5% vs. 63.2% at the June 14 meeting.

US Dollar relevant levels

The index is losing 0.08% at 98.81 facing the next support at 98.58 (low Apr.28) followed by 98.56 (2017 low Apr.25) and then 95.91 (low Nov.9 2016). On the flip side, a break above 99.05 (200-day sma) would open the door to 99.21 (high Apr.27) and finally 99.24 (high Apr.24).