FXStreet (Edinburgh) – The greenback, gauged by the US Dollar Index, is markedly lower on Wednesday, extending the drop to the 96.60 area after bottoming out near 96.40.
US Dollar lower on risk sentiment
A lower fixing for the Chinese Yuan by the PBoC this morning sparked an ephemeral buying interest in the dollar, just to be overrun once again by a more favourable sentiment towards the risk appetite.
Market participants continue to unwind USD-long positions along with diminishing expectations for a Fed’s lift-off in September, all amidst the recent moves by the PBoC and comments by Fed’s Lockhart and Fischer, arguing there is no rush in hiking rates next month.
US Dollar relevant levels
As of writing the index is losing 0.70% at 96.60 with the immediate support at 96.42 (low Aug.12) ahead of 96.29 (low Jul.27) and finally 95.97 (low Jul.9). On the flip side, a breakout of 97.33 (high Aug.12) would aim for 97.59 (high Aug.11) and then 97.92 (high Aug.10).
(Market News Provided by FXstreet)