US Dollar weakens farther below 92.00 handle, fresh 3-month lows

   •  USD selling remains unabated.
   •  Sliding USTs add to the weakness.

The greenback held on the defensive at the start of 2018, with the key US Dollar Index languishing near its lowest level in over three months.

The USD extended its recent downslide and posted its first yearly loss since 2012. The index ended 2017 with a loss of around 9.8%, marking its biggest yearly loss since 2003, and slipped further below the 92.00 handle on Tuesday.

Today's follow-through weakness was primarily led by a sharp retracement in the US Treasury bond yields, which added to the already weaker sentiment surrounding the greenback.

In absence of any major market moving economic releases from the US, the US bond yield dynamics would continue to influence the buck's momentum on the first trading day of a new year. 

Meanwhile, important macroeconomic releases, scheduled at the beginning of a new month, would take the lead later this week and help investors determine the next leg of directional move. The key focus would be on Wednesday's FOMC meeting minutes and the keenly watched NFP on Friday.