US Dollar weaker, sinks below 92.00

The greenback, when tracked by the US Dollar Index, has accelerated the downside today and it is testing fresh lows in sub-92.00 levels.

US Dollar in 32-month lows

The index has come under renewed selling pressure during the first half of the week with no other driver than the recent steady stances from Chief Yellen and President Draghi in their speeches at the Jackson Hole Symposium on Friday.

On top, Draghi showed no concern over the recent appreciation of the exchange rate despite inflation in the euro area showed no signs of a sustainable pick up in recent months.

Collaborating with the USD’s decline, yields of the key 10-year reference has dropped below the 2.10% level for the first time since November 2016.

In the US data space, home prices measured by the S&P/Case-Shiller index are due along with the speech by Chicago Fed C.Evans (voter, centrist).

US Dollar relevant levels

As of writing the index is losing 0.62% at 91.60 and a breakdown of 91.51 (low Jan.15 2015) would expose 90.00 (psychological handle) and finally 87.63 (low Dec.16 2014). On the flip side, the next up barrier aligns at 92.54 (high Aug.28) followed by 93.08 (10-day sma) and then 93.21 (21-day sma).