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US Dollar weaker, challenging 94.00

  • Selling pressure remains around USD.
  • Yellen kept rate hike expectations unchanged.
  • US producer prices surprised to the upside.

Measured by the US Dollar Index, the greenback is extending the weekly decline and is now threatening to test/breach the critical support at 94.00 the figure.

US Dollar looks to CPI, Trump

The index is trading in 3-week lows at shouting distance from the 94.00 mark today, all amidst a fresh wave of selling pressure and a solid pick up in the demand for EUR, pushing EUR/USD to fresh multi-week tops in the 1.1760/70 band.

Auspicious results from US producer prices for the month of October did nothing to curb the bearish sentiment around the buck, while investors seem to have shifted their focus of attention to tomorrow’s publication of October’s inflation figures tracked by the CPI and retail sales for the same period.

Further news around USD noted Chief J.Yellen leaving unchanged the prospects for extra tightening by the Federal Reserve at the December 13 meeting, while St. Louis Fed J.Bullard (2019 voter, dovish) noted rates should be left unchanged within the current low inflation environment.

US Dollar relevant levels

As of writing the index is losing 0.40% at 94.11 and a breakdown of 94.03 (23.6% Fibo of the 2017 drop) would aim for 93.66 (21-day sma) and finally 93.29 (200-day sma). On the upside, the immediate resistance aligns at 95.15 (high Nov.7) seconded by 95.90 (38.2% Fibo of the 2017 drop) and then 96.55 (200-day sma).

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