US Dollar Drops to 94.40 Despite US Data
The greenback, measured by the US Dollar Index, is trading on the defensive today around the 94.40 area.
US Dollar weaker ahead of Fedspeak
The greenback seems unconvinced despite auspicious results from the US docket today, where key inflation figures have ticked higher in April and Housing Starts, Capacity Utilization and Industrial Production have all come above initial expectations as well.
On the not-so-bright side, Building Permits have disappointed markets at 1.116M or gaining 3.6% vs. 4.3% forecasted.
The greenback is retreating for the second consecutive session following last week’s sharp rebound in spite of market chatter putting back on the table a potential rate hike by the Fed in June.
USD will remain under pressure ahead in the day, as FOMC’s Lockhart, Williams and Kaplan are due to speak.
US Dollar relevant levels
The index is losing 0.15% at 94.43 and a breakdown of 91.89 (2016 low May 3) would aim for 91.50 (low Jan.15 2015) and finally 87.23 (low Nov.17 2014). On the flip side, the immediate up barrier aligns at 95.02 (55-day sma) followed by 95.21 (high Apr.14) and then 96.42 (high Mar.28).