US Dollar nose-dives to test 97.00

FXStreet (Edinburgh) - The greenback, in terms of the US Dollar Index, has left session tops in the upper-97.00s to quickly drop to test the 97.10 area on Monday.

US Dollar weaker on Lockhart comments

Today’s comments by Atlanta Fed President D.Lockhart have removed an important tailwind from the recent USD upside after he signaled that there still remains downside pressure on inflation figures. In addition he expects the labour market to keep tightening and put further upward pressure on wages. In line with last week’s appreciations, he hinted at the possibility that the Fed could hike rates next month.

Data wise in the US, the Labour Market Conditions Index came in at 1.1 during July vs. 1.4 from the previous month (revised higher from 0.8).

US Dollar relevant levels

As of writing the index is retreating 0.47% at 97.10 with the next support at 96.89 (low Jul.23) followed by 96.29 (low Jul.27) and finally 95.97 (low Jul.9). On the upside, a breakout of 97.92 (high Aug.10) would aim for 98.46 (high Apr.21) and then 98.73 (high Apr.16).

BoE rate hike lift-off for next Easter - ANZ

Analysts at ANZ noted that the BoE’s monetary policy committee (MPC) was slightly more dovish than expected last week.
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