US Dollar clings to gains near 94.60

Measured by the US Dollar Index, the greenback managed to keep the trade in the positive territory so far today, around the 94.50/60 band.

US Dollar stays supported near 94.20

After yesterday’s test of fresh multi-month lows near 94.20, the index grabbed some attention and is now posting some decent gains in the 94.50/60, although the underlying bearish note seems unchanged around the buck.

Uncertainties around the US political scenario appear as the main drag for the greenback, especially after the reiterated and unsuccessful attempts from the Trump administration to replace ‘Obamacare’.

In addition, poor data as of late poured cold water over expectations of another rate hike by the Federal Reserve, impacting on US yields and putting the buck under extra downside pressure.

Earlier in the session, US housing starts and building permits expanded more than initially estimated in June, although markets largely ignored the data.

US Dollar relevant levels

The index is up 0.17% at 94.61 facing the next hurdle at 95.24 (10-day sma) seconded by 95.61 (high Jul.14) and finally 95.96 (high Jul.11). On the flip side, a break below 94.27 (2017 low Jul.18) would open the door to 94.20 (low Aug.26 2016) and then 94.05 (low Aug.18 2016).