FXStreet (Edinburgh) – After dropping to multi-week lows near 96.20 in early trade, the US Dollar Index – which gauges the greenback vs. its main rivals – has now regained the 96.60 area.

US Dollar depressed by data, sentiment

Dovish comments by New York Fed’s W.Dudley have been taking a toll on the dollar since Wednesday, dragging the index to the low-96.00s earlier today, levels last seen in mid-October.

Furthermore, the index has been retreating uninterruptedly since recent tops in the vicinity of the psychological 100.00 handle printed last week, all ahead of tomorrow’s key Non-farm Payrolls for the month of January (190K exp).

In addition, results from the US docket continue to disappoint investors, directly weighing on market expectations of a Fed’s rate hike at its March meeting.

US Dollar significant levels

As of writing the US Dollar Index is losing 0.51 % at 96.75 and a breakdown of 95.43 (76.4% Fibo of 93.83-100.60) would aim for 95.00 (psychological level) and then 93.86 (low Oc.14). On the other hand, the next hurdle lines up at 97.86 (100-day sma) followed by 98.81 (55-day sma) and then 99.88 (high Jan.29).

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After dropping to multi-week lows near 96.20 in early trade, the US Dollar Index – which gauges the greenback vs. its main rivals – has now regained the 96.60 area…

(Market News Provided by FXstreet)

By FXOpen