US Dollar plummets to fresh lows around 99.50

The US Dollar Index – which tracks the buck vs. its main competitors – has intensified its decline today, challenging December’s lows in the mid-99.00s.

US Dollar weaker on Trumponomics

USD’s reaction to Trumponomics has gone full swing on Tuesday, dragging DXY to multi-week lows in the 99.50 area.

In fact, the daily decline in the buck has precipitated after US President D.Trump said other countries could be taking advantage by devaluation – making yet another point regarding the recent USD strength.

In addition, the greenback suffered the poor prints from the Consumer Sentiment gauged by the Conference Board in January (111.8 act. vs. 113.0 exp.), the Chicago PMI (50.3 act. vs. 55.0 exp.) and the Employment Cost Index in Q4 (0.5% act. vs. 0.6% exp.), all sending DXY lower.

Additionally, USD remains under extra pressure on the positioning front, as speculative net longs have deflated to levels last seen in mid-November in the week to January 24 according to the latest CFTC report.

US Dollar relevant levels

The index is losing 0.98% at 99.44 facing the immediate support at 98.92 (61.8% Fibo of the Nov-Jan. up move) followed by 96.94 (low Nov.4) and then 95.91 (low Nov.9). On the other hand, a break above 100.42 (high Jan.31) would open the door to 101.02 (high Jan.30) and finally 101.45 (55-day sma).