US Dollar approaches 100 on dovish Trump

The US Dollar Index (DXY) – which tracks the greenback vs. its main rivals, came in under heavy selling pressure following the dovish comments from President Donald Trump and dropped to a new two-week low. At the moment, the index is losing 0.5% on the day at 100.15.

Donald Trump said that he favors a low-interest policy and the dollar was getting too strong because people have confidence in him and added that the only good thing about a strong dollar was the way it sounded. Although Trump has made similar remarks about the greenback value before, the fact that he touched on the Fed's interest rate policy could have triggered the heavy sell-off. 

Technical levels

A break below 100 (psychological level) could aim for 99.50 (Mar. 23 low) and 99 (psychological level). To the upside, the index could encounter the initial resistance at 100.75 (daily high) followed by 101.25 (Monday high) and 102 (psychological level).