US Dollar bounces off lows, around 91.20

The selling pressure around the greenback stays unabated this week, now dragging the US Dollar Index (DXY) – which tracks the buck vs. a basket of its major rivals – to the vicinity of the 91.00 handle, where seems to have found some initial contention.

US Dollar weaker after ECB

After bottoming out in levels last traded in January 2015, the index managed to regain some attention and is now returning to the 91.20/30 band, although the broader picture still remains bearish for the buck.

In fact, (very) dovish comments by FOMC’s L.Brainard earlier in the week plus increasing geopolitical concerns around North Korea and the ‘debt ceiling’ issue have been all collaborating with the acceleration of the down move in USD to fresh 33-month lows.

Furthermore, investors stay constructive on EUR/USD after President Draghi avoid any comments on the appreciation of the single currency in recent weeks, all adding fresh legs to the pair and thus dragging lower DXY.

In the data space, July’s wholesale inventories and the speech by Philly Fed P.Harker (voter, hawkish) are only expected in the US calendar later today.

US Dollar relevant levels

As of writing the index is retreating 0.30% at 91.21 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).