US Dollar plummets to 97.00, session lows

The greenback – in terms of the US Dollar Index – is intensifying its daily downside today, now testing fresh lows in the boundaries of the key support at the 97.00 handle.

US Dollar weaker ahead of data

The index met a wave of selling interest soon after reaching session highs around 97.40 earlier in the European morning.

In fact, USD gathered extra downside pressure following a sharp rebound in the demand for the riskier assets, especially vs. the Euro and the Sterling, while month-end flows seems to be also driving the sentiment around the buck.

The greenback is now retreating for the second consecutive session after being rejected from yesterday’s tops around 97.70, with market participants now re-shifting their focus on the 96.70 region, or YTD lows.

In the US data space, only second-tier releases expected today: pending home sales and the Chicago PMI will precede de release of the Fed’s Beige Book.

US Dollar relevant levels

The index is losing 0.19% at 97.04 facing the next support at 96.97 (low May 26) seconded by 96.81 (low May 25) and then 96.70 (2017 low May 23). On the other hand, a breakout of 97.70 (high May 30) would open the door to 98.03 (20-day sma) and finally 99.30 (200-day sma).