US Dollar still depressed near YTD lows, around 96.60

The greenback, in terms of the US Dollar Index, has faded the earlier spike to the 96.70 area and is now returning to the 96.60/55 band, close to YTD lows.

US Dollar in 7-month lows

Earlier in the session, DXY has recorded fresh yearly lows near 96.50 as the selling mood surrounding the buck stays everything but abated despite yesterday’s tepid bull run to the vicinity of 96.70.

Poor data as of late, particularly from the labour sector, 10-year benchmark yields in sub-2.15% levels, or multi-month lows, and the likeliness of extra risk-off sentiment on Thursday’s testimony by former FBI Director J.Comey have all been plotting against some meaningful recovery of the greenback, which eyes the post-Trump dip in the 95.90 region as the next interim target.

In the data space, nothing noteworthy, with JOLTs Job Openings rising to 6.044 million in April, bettering initial estimates.

On the positioning front, USD speculative net longs have been decreasing for the last five weeks, now at the lowest levels since early October 2016 in the week to May 30, as per the latest CFTC report.

US Dollar relevant levels

The index is retreating 0.17% at 96.61 facing the immediate support at 96.49 (2017 low Jun.6) followed by 95.91 (low Nov.9 2016) and then 94.95 (low Sep.22 2016). On the upside, a breakout of 97.26 (high Jun.2) would open the door to 97.70 (high May 30) and then 97.58 (20-day sma).