US Dollar slips to session lows on U-Mich

The US Dollar Index (DXY) – which tracks the buck vs. its main competitors – has now gathered further downside traction and is testing daily lows near 97.20.

US Dollar offered on US releases

The index has traded on the defensive since the very start of the session, coming down from recent peaks in the 97.50 area and now struggling to close its second consecutive week with losses.

USD remains weak following the disappointing result from the advanced US consumer sentiment for the current month, coming in below expectations at 94.5 vs. May’s 97.1.

The weak reading adds to the earlier softer-than-forecasts prints from May’s housing starts and building permits, all collaborating with the buck’s decline.

Closing the week, Dallas Fed R.Kaplan (voter, hawkish) will be the first governor to speak before the recent decision by the Federal Reserve to raise the Fed Funds target range to 1.00%-1.25%.

US Dollar relevant levels

The index is losing 0.30% at 97.21 and a break below 96.31 (2017 low Jun.14) would target 95.91 (low Nov.9 2016) and then 94.95 (low Sep.22 2016). On the upside, the next up barrier at 97.63 (38.2% Fibo of the May-June drop) followed by 97.70 (high May 30) and then 98.04 (50% Fibo of the May-June drop).