US Dollar stays in red around 92.80

The greenback, in terms of the US Dollar Index, trades within a tight range so far on Wednesday, reverting yesterday’s advance to the vicinity of the 93.00 handle.

US Dollar now focused on Payrolls

Despite occasional bullish attempts, the index remains close to Monday’s fresh cycle lows in the 92.65/60 band, while the broader bearish picture around the greenback stays unchanged.

USD posted no visible reaction after today’s ADP report showed the US private sector added 178K jobs during last month, a tad below what was initially forecasted (185K).

Adding to USD weakness, St Louis Fed J.Bullard (2019 voter, dovish) advocated for a pause in the Fed’s tightening cycle at his comments earlier in the day. Bullard also added that inflation measures have deteriorated in H1 and that an ‘on hold’ stance could help the Fed achieve its inflation target sooner.

In the meantime, US politics, particularly the so-called ‘Russia-gate’ continue to undermine any attempt of recovery in USD, while expectations of another rate hike in the next months seems to be declining and also collaborating with the already deteriorated outlook for the buck.

US Dollar relevant levels

The index is losing 0.10% at 92.83 facing the immediate support at 92.64 (2017 low Jul.31) seconded by 92.52 (low Aug.24 2015) and finally 91.88 (2016 low May 3). On the other hand, a breakout of 93.44 (10-day sma) would aim for 94.11 (high Jul.26) and then 94.42 (21-day sma).