US Dollar tumbles to lows sub-100.00 ahead of data

The greenback – tracked by the US Dollar Index – is now rapidly losing the grip and dropping to fresh lows in the 99.90 area.

US Dollar weaker on comments

The greenback faded the initial positive tone and has quickly dropped to test the relevant support area in the 99.90/80 band after Trump’s trade advisor P.Navarro said Germany is using ‘grossly undervalued’ euro to exploit its US and EU trade partners.

In the meantime, USD’s near term outlook remains Trump-dependent ahead of the FOMC meeting tomorrow. Market consensus expects the Committee to refrain from tightening the monetary policy further, as uncertainty over the policies under Trump’s administration has done nothing but rise since he took office.

Later in the NA session, Employment Cost Index during Q4 is due followed by the S&P Case-Shiller Index, Chicago PMI and the Conference Board’s Consumer Confidence gauge.

US Dollar relevant levels

The index is losing 0.47% at 99.95 facing the immediate support at 99.77 (low Jan.26) followed by 99.49 (low Dec.8) and then 99.41 (100-day sma). On the other hand, a break above 100.81 (high Jan.27) would open the door to 101.20 (20-day sma) and finally 101.44 (55-day sma).