US Dollar tumbles to 2017 lows near 95.90

The US Dollar Index, which gauges the buck vs. its main rivals, remains on the defensive so far this week and is now struggling around the 96.00/95.90 region, or fresh YTD lows.

US Dollar unmoved by Yellen

The index came down to test the area around 95.90, last seen in the wake of Trump’s win back to November 2016, always backed by a strong selling bias sparked after hawkish comments by ECB’s Draghi caught markets off guard on Tuesday.

Also weighing on the sentiment around the buck, uncertainty around the American Health Care Act bill (or ‘Trumpcare’) remains on the rise as Republicans still stay pretty divided on the subject.

USD stayed apathetic after yesterday’s innocuous comments by Chief J.Yellen, who argued that the likeliness of another crisis is close to zero, as the banking system is now stronger. Furthermore, she inferred that the reduction of the Fed’s balance sheet will be ‘gradual and predictable’.

Data wise in the US today, May’s pending home sales are due along with the EIA’s weekly report on US crude oil inventories, although much of the attention should be on speeches by central bankers at the ECB Forum in Portugal.

US Dollar relevant levels

The index is losing 0.11% at 96.07 facing the immediate support at 95.91 (low Nov.9 2016) followed by 94.95 (low Sep.22 2016) and finally 94.05 (low Aug.18 2016). On the flip side, a breakout of 96.95 (21-day sma) would open the door to 97.02 (10-day sma) and then 97.56 (high Jun.15).