US Dollar fails near 91.00, tumbles below 90.00
- DXY quickly reverted the recent upside and dropped to sub-90.00 levels.
- Trump-related headlines, JPY-buying keeps weighing on USD.
- Next on tap will be the final print of the US Consumer Sentiment.
The greenback remains on the defensive during the second half of the week and has now pushed the US Dollar Index (DXY) to test fresh lows in the 89.90 region.
US Dollar weaker on risk-off trade
The index is intensifying the correction lower on Friday, breaking below the psychological support at 90.00 the figure and always against the backdrop of increasing risk-of sentiment, lower US yields and fears of a global trade war.
In fact, yields of the US 10-year note have dropped further to the 2.80% neighbourhood today, markedly lower than last week’s multi-year peaks in the 2.96% zone.
Adding to the renewed downside in the buck, BoJ’s H.Kuroda hinted at the likeliness that the central bank could exit the mega-loose monetary policy stance if inflation hits the 2% goal. USD/JPY is currently navigating the 105.30 area, levels last seen in November 2016.
In the US data space, the final print of the Reuters/Michigan index will be the only publication later today, expected at 99.5 for the month of February.
US Dollar relevant levels
As of writing the index is losing 0.40% at 89.91 and a breakdown of 89.78 (21-day sma) would aim for 89.69 (low Feb.27) and finally 89.51 (low Feb.26). On the upside, the next up barrier aligns at 90.81 (55-day sma) seconded by 90.93 (high Mar.1) and then 91.00 (high Jan.18).