US Dollar bounces off 2017 lows, back near 91.60
The greenback stays under considerable selling pressure on Thursday, now seeing a small rebound after bottoming out in the 91.40 area, or fresh YTD lows.
US Dollar weaker on Draghi
Today’s performance of the buck has deteriorated significantly after President Mario Draghi disappointed EUR-bears at the ECB meeting, avoiding any direct mention of the recent appreciation of the European currency.
Draghi also noted that the Council did not discuss neither scarcity nor inflation outlook beyond 2019, while he stressed that the central bank does not see negative effects of QE.
In the meantime, the index seems to have found some support near 91.40, levels last visited in January 2015, while yields of the key US 10-year reference stay below the 2.10% level.
US Dollar relevant levels
As of writing DXY is retreating 0.53% at 91.74 and a break below 91.43 (2017 low Sep.7) would target 91.00 (psychological level) en route to 87.63 (low Dec.16 2014). On the upside, the next hurdle is located at 92.48 (10-day sma) seconded by 92.96 (21-day sma) and finally 93.35 (high Aug.31).