US Dollar drops further, testing 95.60

The daily decline in the greenback is now gathering momentum, now dragging the US Dollar Index to fresh lows near 95.60.

US Dollar weaker ahead of FOMC

The index is losing further ground during the NA session and despite the NAHB index has surprised markets to the upside for the current month, coming in at 65 vs. 60 expected and up from August’s 59.

Market participants continue to adjust to the recent auspicious results from US CPI, while speculations on the upcoming FOMC meeting and the likeliness of a potential rate hike by the Fed keep ruling on the global sentiment.

Looking ahead, Tuesday’s docket in the US will include Housing Starts and Building Permits, all preceding the critical FOMC gathering on Wednesday.

US Dollar relevant levels

The index is retreating 0.42% at 95.70 and a breakdown of 95.39 (20-day sma) would open the door to 94.70 (support line off 2016 low) and then 94.05 (low Aug.18). On the flip side, the next hurdle lines up at 96.12 (high Sep.16) ahead of 96.25 (high Sep.1) and finally 96.50 (high Aug.5).