US Dollar remains below 93 as political uncertainties weigh

The heavy selling pressure witnessed on the USD in the second half of the day dragged the US Dollar Index, which tracks the greenback against a basket of six trade-weighted peers, to its lowest level in more than 14 months at 92.64. As of writing, the index is at 92.67, losing 0.57% on the day.

Following last Friday's weak inflation figures, the greenback struggled to make a meaningful recovery during the day as investors refrained from taking long USD positions amid dampened expectations for a hawkish policy move by the Fed. Nevertheless, the index was able to float above the 93 handle before it encountered a technical selling pressure amid month-end flows in the closing hour of the London session. After plummeting below that level, the index moved sideways for a couple of hours before it was hit by another political development in the U.S.

• Trump removes Scaramucci as communications director - NYT

A late report by the New York Times said that U.S. President Donald Trump has decided to remove Anthony Scaramucci, who started working as communications director Trump only 10 days ago, from his job. The ongoing uneasiness in the White House continues to cause concerns among investors about whether the Trump administration could deliver on its campaign promises.

On Tuesday, Core Personal Consumption Expenditures Price Index, which is expected to rise 0.1% on a monthly basis in June, will be released from the U.S. Additionally, Personal Income and Personal Spending will also be followed closely by the participants. Analysts at Wells Fargo said that expect another soft inflation print in June with a flat reading and further added that also expect personal income growth remained steady at 0.3 percent in June.

• US: Personal Income expected to rise 03% in June - Wells Fargo

Technical outlook

On the downside, the index could face the first technical support at 92.50 (May 2, 2016, low) ahead of 91.90 (May 3, 2016, low) and 91 (psychological level). On the upside, 93 (former support) is now the first hurdle ahead of  93.80 (Jul. 28 high) and 94.20 (Jul. 17 high).

Today's data from the U.S.

• Chicago PMI fell to 58.9 in July from 65.7 in June, lowest level in three months
• US: Pending Home Sales Index climbed 1.5% to 110.2 in June