US Dollar stays depressed around 91.40

The greenback, in terms of the US Dollar Index (DXY), remains (well) entrenched into the negative territory today, now treading water in the 91.35/40 band.

US Dollar attention to 91.00

Despite the index rebounded from fresh 33-month lows in the 91.00 neighbourhood, it remains on its way to close the week with losses.

The broad-based weakness surrounding the buck has intensified as of late following dovish Fedspeak (mainly from FOMC’s L.Brainard) and mixed results from the US docket, while NK-led geopolitical concerns keep playing its part in the buck’s decline. Furthermore, markets paid little-to-nil attention to the recent Trump-Democrats agreement regarding the (temporary) lift of the debt ceiling.

In addition, investors seem to have ignored Draghi’s warning over a strong EUR, only focusing on the imminent ECB ‘tapering’ and pushing EUR/USD higher, all in detriment of the greenback.

US Dollar relevant levels

As of writing the index is retreating 0.11% at 91.39 and a break below 91.08 (2017 low Sep.8) would target 91.00 (psychological level) en route to 87.63 (low Dec.16 2014). On the upside, the next hurdle is located at 92.27 (10-day sma) seconded by 92.82 (21-day sma) and finally 93.35 (high Aug.31).