US Dollar plummets to the 89.50 region on risk-on trade
- Risk-on sentiment surges in the global markets, hurting USD across the board.
- Geopolitical jitters, alleviated trade war concerns help riskier assets.
- US January’s Factory Orders and speech by FOMC’s L.Brainar next on tap
The US Dollar Index (DXY) – which gauges the bucj vs. its main competitors – is losing ground across the board and testing the lower end of the range in the mid-89.00s.
US Dollar weaker on risk-on pick up
The now better tone in the risk-associated space is forcing the index to recede towards the 89.55/50 band, or multi-day lows, fading at the same time the post-Powell rally.
In fact, DXY lost already around 1.6% since last week’s tops in levels just shy of the key 91.00 milestone.
Geopolitical concerns eased further today after North Korea hinted at the probability of a denuclearization, while worries over the probable trade wars have equally subsided, all boosting the demand for riskier assets in detriment of the buck.
In the US data space, January’s Factory Orders are due later in the NA session seconded by the speech by FOMC’s permanent voter L.Brainard (mega-dovish).
US Dollar relevant levels
As of writing the index is losing 0.46% at 89.59 facing the next support at 89.51 (low Feb.26) followed by 88.44 (low Jan.26) and finally 88.25 (2018 low Feb.16). On the other hand, a break above 90.93 (high Mar.1) would open the door to 91.00 (high Jan.18) ahead of 92.64 (2018 high Jan.9).