US Dollar flirting with daily lows near 93.40

Tracked by the US Dollar Index (DXY), the greenback is posting moderate losses on Friday around the mid-93.00s following the opening bell in Europe.

US Dollar attention to US politics, data

The index came under renewed downside pressure at the end of the week, testing daily lows in the 93.40/35 band at the time of writing although staying positive on a weekly basis.

Positive data from retail sales and the Philly Fed index this week coupled with some positive comments from NY Fed W.Dudley bolstered the upside in DXY, although it failed to sustain gains further north of the 94.00 limestone.

However, rising jitters in the US political scenario re-emerged on Thursday, increasing the (already high) uncertainty surrounding the Trump’s administration, weighing on the buck and putting US yields under extra downside pressure.

In fact, yields of the key 10-year reference plummeted to the 2.18% region yesterday, just to move a tad higher near 2.20% earlier today.

In the US data space, a first look to August’s consumer sentiment via the Reuters/Michigan index will be the only release of note today.

US Dollar relevant levels

As of writing the pair is retreating 0.26% at 93.40 facing the immediate support at 93.34 (21-day sma) seconded by 93.22 (low Aug.17) and finally 92.83 (low Aug.11). On the flip side, a breakout of 94.06 (high Aug.16) would open the door to 95.10 (23.6% Fibo of the 2017 drop) and then 96.25 (high Jul.5).