US Dollar drops further, 95.00 on sight

The US Dollar Index – which measures the buck vs. a basket of its main rivals – has accelerated its daily decline to the boundaries of the key support at 95.00 the figure.

US Dollar weaker post-FOMC, Fedspeak eyed

The index is sharply lower so far this week, trading closer to weekly lows in the 95.00 region as the greenback continues to suffer the steady message fro the FOMC at its meeting on Wednesday, all despite the Committee has clearly advocated for a rate hike by year-end.

Auspicious results from Initial Claims did nothing to curb the bearish sentiment around USD, while lower-than-expected Existing Home Sales during August have added to the downbeat mood.

Looking ahead, USD will remain in the focus of attention in light of tomorrow’s speeches by FOMC’s Philly Fed P.Harker (2017 voter, hawkish?), Atlanta Fed D.Lockhart (2018 voter, centrist) and Cleveland Fed L.Mester (voter, centrist/hawkish).

US Dollar relevant levels

The index is retreating 0.56% at 95.12 and a breakdown of 94.78 (support line off 2016 low) would aim for 94.44 (low Sep.8) and finally 94.05 (low Aug.18). On the other hand, the next hurdle lines up at 96.31 (spike post-BoJ Sep.21) followed by 96.50 (high Aug.5) and then 96.78 (23.6% Fibo of July-August drop).