US Dollar weaker, breaks below 98.00

The US Dollar Index – which tracks the buck vs. its main rivals – is losing further ground on Tuesday, breaking below the key support at 98.00 the figure.

US Dollar focus on FOMC

The greenback remains unable to gather any traction so far this week, prompting the index to recede to fresh 2-week lows in the 97.90/85 band in spite of the positive results from today’s US docket.

In fact, Markit’s manufacturing PMI has ticked higher to 53.4 during last month, while the more relevant ISM Manufacturing has improved to 51.9 during the same period.

The demand for USD remains subdued following early elections polls that showed the gap favouring Democrat candidate H.Clinton vs. Republican candidate D.Trump has been drastically reduced following the FBI investigations over Clinton’s email. The news has hit the buck, prompting sellers to step in and drag the index to fresh 2-week lows in sub-98.00 levels.

Looking ahead, the greenback could find some support in light of the FOMC meeting on Wednesday, where the Committee could send a stronger signal over a potential Fed move by end 2016.

US Dollar relevant levels

The index is losing 0.51% at 97.94 facing the next support at 97.47 (low Oct.12) followed by 95.81 (200-day sma) and finally 95.51 (6-month support line). On the upside, a breakout of 99.09 (high Oct.25) would aim for 99.95 (high Jan.21) and then 100.60 (high Dec.3).