US Dollar accelerates the breakdown of 93.00

The greenback is now gathering further downside traction, forcing the US Dollar Index to drop further south of the 93.00 handle.

US Dollar in 3-day lows

The index has intensified the drop to fresh 3-day lows in a context where EUR/USD seems to have resumed the upside and is extending the rebound from weekly lows vs. the buck.

Also weighing down on USD, yields of the key US 10-year reference are reverting a 4-session positive streak and have now returned to the 2.30% neighbourhood, some 10 bps lower than monthly tops in the 2.40% area.

In the data space, both initial claims (222K WoW) and the Philly Fed manufacturing gauge (27.9) surprised markets to the upside earlier today, although investors seem to have largely bypassed the news.

US Dollar relevant levels

As of writing the index is losing 0.40% at 92.93 and a break below 92.75 (low Oct.13) would expose 91.78 (low Sep.22) and then 91.01 (2017 low Sep.8). On the flip side, the next resistance lines up at 93.80 (high Oct.18) followed by 94.03 (23.96% Fibo of the 2017 drop) and finally 94.19 (100-day sma).