The selling pressure remains unabated around the US Dollar Index, which tracks the greenback vs. its major rivals, now testing lows in sub-95.00 levels.
US Dollar weaker ahead of FOMC
After a brief visit to sub-95.00 levels – or 3-week lows – the index remains in the red territory meandering the 95.00/10 band following the start of the European session on Monday. The greenback is mostly losing ground vs. its G10 peers at the beginning of the week in spite of the prevailing risk-off trade, which prompted market participants to lean towards another safe haven currencies, like the yen or the franc.
Absent releases in the US docket today, investors’ attention will shift to tomorrow’s Retail Sales during August, Industrial Production and the regional manufacturing gauge tracked by the Empire State index.
US Dollar levels to consider
At the moment the index is losing 0.22% at 94.98 with the next support at 93.72 (low Aug.26) ahead of 93.25 (low Aug.25) and finally 92.59 (low Aug.24). On the other hand, a breakout of 96.53 (high Sep.4) would expose 96.57 (high Aug.20) and then 97.07 (high Aug.19).