DXY keeps falling, around 96.70

FXStreet (Edinburgh) - The US Dollar Index, which tracks the greenback vs. its main rivals, is extending its offered tone on Tuesday and is currently hovering over the 96.70 region.

DXY down from 97.30

The dollar was unable to sustain a climb beyond overnight peaks around 97.30, resuming the recent negative trend along with a pick up in the risk sentiment soon afterwards.

Key US inflation figures will be the immediate test for the index today, followed by Markit’s manufacturing PMI and New Home Sales.

Previous comments by Fed’s Bullard did nothing to allay the selling interest in the dollar despite his hawkish tone, signaling that current low interest rates are inappropriate for the US economy.

DXY levels to consider

The index is now losing 0.32% at 96.72 and a break below 96.41 (low Mar.18) would aim for 96.30 (low Mar.6) and finally 95.84 (low Mar.5). On the upside, the initial barrier lines up at 98.23 (high Mar.23) ahead of 99.11 (high Mar.20) and then 99.46 (high Mar.19).

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