US Dollar Index depressed near 92.50

The US Dollar Index – which tracks the greenback vs. its main rivals – remains under pressure at the beginning of the week, now trading in the 92.40 area, near YTD lows.

US Dollar offered post-Yellen

The index has managed to rebound from fresh yearly lows near 92.30 recorded at the very beginning of the Asian session today, although it remains fragile following the innocuous speech by Chief J.Yellen at the Jackson Hole Symposium on Friday.

Expectations of a Fed’s move on rates later in the year appear to be declining among investors, hurting both DXY and yields in the US money markets. In fact, yields of the US 10-year reference are now attempting a rebound above the 2.17% level after bottoming out near 2.16% on Friday.

In addition, another round of the Trump-NAFTA conflict seems to have buried any optimism regarding the future of the tax reform and extra fiscal stimulus via infrastructure spending, all weighing on the buck and keeping USD-bulls at bay.

Data wise today, wholesale inventories, July’s goods trade balance and the Dallas Fed manufacturing index are all due later in the NA session.

US Dollar relevant levels

As of writing the index is losing 0.01% at 92.51 and a breakdown of 92.31 (2017 low Aug.28) would open the door to 91.91 (2016 low May 3) and then 91.51 (low Jan.15 2015). On the flip side, the next up barrier aligns at 93.25 (10-day sma) followed by 93.44 (high Aug.25) and finally 94.14 (high Aug.16).