US Dollar plummets to lows near 94.50

Gauged by the US Dollar Index (DXY), the buck has lost its initial optimism and has now returned to the red territory in the mid-94.00s.

US Dollar gains capped near 95.00

After advancing to the vicinity of the key level around 95.00 the figure, the greenback has given away those gains and retreated to the 94.50 region following unexpected hawkish remarks by President M.Draghi at his press conference following the decision by the ECB to keep its status quo unchanged today.

USD picked up extra downside pressure after Draghi suggested the Council could debate any QE-related theme in Autum, while he also noted that the repricing of the European currency has received some attention.

On the US data front, the Philly Fed manufacturing index disappointed expectations at 19.5 in July, down from June’s 27.6. Further US data saw initial claims coming in at 233K WoW, taking the 4-week average to 243.75K from 246.00K.

US Dollar relevant levels

The index is losing 0.07% at 94.57 and 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). On the upside, the next hurdle emerges at 95.16 (10-day sma) seconded by 95.67 (21-day sma) and finally 96.25 (high Jul.5). On the flip side,