FXStreet (Edinburgh) – The US Dollar Index, which tracks the greenback vs. its main competitors, is sharply lower on Wednesday, albeit it has managed to leave session lows in sub-96.00 levels.
US Dollar weaker on PBoC
Another Yuan ‘fixing’, another sell-off in USD. The greenback has accelerated its weekly drop to the area below the 96.00 mark, levels last seen in mid-July, as market expectations of the Federal Reserve returning to policy normalization in September have been markedly trimmed. Market participants now stick a roughly 30% chances of a September’s lift-off, while that probability was close to 60% on Friday.
Nothing relevant in the data sphere, while Initial Claims and Retail Sales will be tbe main highlights tomorrow.
US Dollar relevant levels
As of writing the index is losing 1.14% at 96.18 with the immediate support at 95.92 (low Aug.12) ahead of 95.63 (low Jul.13) and finally 95.46 (low Jul.10). 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)