US Dollar down against nearly every G10 currency
The US Dollar (USD) is in the red across the board against every major currency. Although no real outliers to notice, it is worth wild mentioning that the Greenback is eyeballing a few one-year-low levels against Polish Zloty (USD/PLN), the Swiss Franc (USD/CHF) and inverted nearing a one-year-high against the Euro (EUR/USD). This filters through in a fifth consecutive negative performance for the US Dollar Index which is starting to head 101.00. The economic calendar is bearing a main event this Wednesday with the US Consumer Price Index (CPI) gauge. In all the equivalents on monthly and yearly performances, the core inflation will be the one to watch for any market-moving reactions. Seeing the recent data points in terms of services, expectations are that the core will remain sticky near 5% while any lower number will trigger further US Dollar weakness.
The US Dollar is on the ropes and does not seem to be able to trigger any turnaround at the moment. For a fifth consecutive day, the US Dollar is losing substantial ground. On Tuesday, it was Asian currencies that were weighing the Greenback, while this Wednesday the US Dollar is losing ground against nearly every major G10 traded currency. This smashes the US Dollar Index (DXY) again to the floor, with the 101 level coming into play, a nearly one-year-low.
On the upside, look for 102.811 at the 55-day Simple Moving Average (SMA) that will partially regain its importance after having been chopped up that much a few weeks ago. Only a few inches above the 55-day SMA, the 100-day SMA comes in at 102.93 and could create a firm area of resistance in between both moving averages. In case the DXY makes its way through that region, the high of July at 103.57 will be the level to watch for a further breakout. On the downside, 101.50 has been broken and the US Dollar price action is starting to get into orbit around 101.00. Once that level is breached, expect to see the Greenback printing near one-year-lows against most major pairs. Special notice for 100.75, as that level has been a floor since February 2nd and could open the door for a slide below 100.00 once broken through it.
On the upside, look for 102.811 at the 55-day Simple Moving Average (SMA) that will partially regain its importance after having been chopped up that much a few weeks ago. Only a few inches above the 55-day SMA, the 100-day SMA comes in at 102.93 and could create a firm area of resistance in between both moving averages. In case the DXY makes its way through that region, the high of July at 103.57 will be the level to watch for a further breakout. On the downside, 101.50 has been broken and the US Dollar price action is starting to get into orbit around 101.00. Once that level is breached, expect to see the Greenback printing near one-year-lows against most major pairs. Special notice for 100.75, as that level has been a floor since February 2nd and could open the door for a slide below 100.00 once broken through it.