US Dollar Index remains under pressure near 95.60

• The recovery in the index lost traction near 95.70.
• US 10-year yields climb to session highs above 2.85%.
• US imposed new sanctions against two Russian individuals.

The greenback, in terms of the US Dollar Index (DXY), remains on the defensive during the first half of the week and is now hovering over the 95.60/55 band.

US Dollar Index weaker on US politics, Trump

The index loses ground for the fourth consecutive session so far today, prolonging the correction lower following fresh 13-month tops in the 97.00 neighbourhood on August 15.

President Trump’s criticism of the Fed’s policy of raising rates late on Monday resurfaced fears of intervention among investors, while potentially undermining at the same time the independence of the Federal Reserve.

In addition, speculations that the White House could look to increase the selling pressure around the buck in the current context of trade disputes with China, Turkey and the EU have been growing bigger, weighing further on the buck and collaborating with the decline to multi-day lows.

US Dollar relevant levels

As of writing the index is losing 0.28% at 95.53 facing the next support at 95.40 (21-day SMA) seconded by 94.99 (low Aug.8) and finally 94.86 (55-day SMA). On the other hand, a break above 96.07 (10-day SMA) would open the door to 96.98 (2018 high Aug.15) and then 97.87 (61.8% Fibo of the 2017-2018 drop).