US Dollar tumbles to lows near 100.80

The US Dollar Index – which gauges the buck vs. its main rivals – is accelerating the decline today to fresh lows in the 100.85/80 band.

US Dollar weaker ahead of Trump

The index met further downside pressure on Monday, quickly breaking below the key support at 101.00 the figure following mixed results from the US docket and a generalized cautious tone ahead of Trump’s speech on Tuesday.

From the US docket, Durable Goods Orders have expanded above estimates 1.8% in January, although Core orders have unexpectedly contracted.

Further data saw Pending Home Sales dropping 2.8% inter-month in January vs. a 0.8% gain initially forecasted and the Dallas Fed Manufacturing Business Index up to 24.5 for the current month.

The selling mood around the buck has intensified as details from Trump’s Budget showed a $54 billion boost to defence, while significant cuts are seen in Foreign Aid and Federal Agencies. Further news said Trump’s first Budget will not address taxes or mandatory spending. News agency Reuters said Tuesday’s speech to have a big statement on infrastructure.

Closing the docket, Dallas Fed R.Kaplan (voter, hawkish) is due to speak.

On the positioning front, speculators continued to scale back its net longs positions during the week ended on February 21, retreating to the lowest level since late October as showed by the latest CFTC report.

US Dollar relevant levels

The index is retreating 0.18% at 100.94 and a break below 100.86 (low Feb.23) would open the door to 100.64 (low Feb.24) and then 100.60 (20-day sma). On the other hand, the next up barrier aligns at 101.35 (55-day sma) followed by 101.75 (high Feb.15) and finally 101.95 (23.6% Fibo of the November-January up move).