US Dollar softer, approaching 93.00

The greenback, in terms of the US Dollar Index, stays on the defensive for the second session in a row on Thursday and is currently hovering over the low-93.00s.

US Dollar attention to US data

The index lost upside momentum following yesterday’s tops, always reflecting the performance of yields in the US money markets, where the key 10-year reference is now navigating the area of session lows in sub-2.34% levels.

The greenback keeps looking to US politics for direction, particularly headlines related to the tax reform proposed by the Trump administration and the potential implementation by year-end.

In addition, investors stay vigilant on the probable successor of Janet Yellen, with FOMC’s J.Powell (dovish) and J.Taylor (hawkish) being the favourite candidates for the time being.

Looking ahead, the Philly Fed manufacturing index next on tap seconded by the usual weekly report on US labour market and the speech by KC Fed E.George (2019 voter, hawkish).

US Dollar relevant levels

As of writing the index is losing 0.10% at 93.09 and a break below 93.01 (10-day sma) would expose 92.85 (low Oct.16) and then 92.57 (55-day sma). On the flip side, the next resistance lines up at 93.34 (100-day sma) followed by 93.55 (high Oct.18) and finally 94.03 (23.96% Fibo of the 2017 drop).