US Dollar depressed near 92.20, US yields eyed

The greenback, in terms of the US Dollar Index, stays under pressure this week around the 92.20 region.

US Dollar weaker on softer yields, NK

The index is trading in the lower bound of the recent range and risks another visit to the critical 92.00 support if the selling bias intensifies in the near term.

The greenback stays under pressure this week, extending the decline to the low-92.00s after failing to advance further north of last week’s tops beyond 93.50.

The poor performance of yields in the US money markets forced DXY to surrender further ground on Tuesday, shedding around 10 bp to the sub-2.06 area, levels last visited in early November 2016.

In addition, geopolitical jitters stemming from North Korea remain well and sound, particularly after recent news suggested the (high) probability of another ICBM launch anytime soon.

Furthermore, the buck derived extra weakness following the dovish comments by FOMC’s permanent voter Lael Brainard on Tuesday, who advocated for a slow pace of rate hikes in light on the current context of low inflation.

In the US data space, the ISM non-manufacturing is next on tap followed by the Fed’s Beige Book and the API’s report on US crude oil supplies.

US Dollar relevant levels

As of writing the index is retreating 0.05% at 92.23 and a break below 92.10 (low Sep.1) would target 91.62 (2017 low Aug.29) en route to 91.51 (low Jan.15 2015). On the upside, the next hurdle is located at 92.60 (10-day sma) seconded by 93.03 (21-day sma) and finally 93.35 (high Aug.31).