US Dollar drops to 3-day lows near 92.60

• The index tumbles to the 92.60 area, or fresh 3-day lows.
• US 10-year yields drop to the 2.95% area, daily lows.
• US headline CPI rose 0.2% MoM in Aprill and 2.5% YoY.

The US Dollar Index (DXY), which tracks the greenback vs. its main rivals, has now tumbled to fresh lows in the 92.60 region.

US Dollar down on US CPI

The index retraced to fresh 3-day lows in the 92.60 region after US inflation figures gauged by the headline CPI rose less than estimated in April, 0.2% MoM and 2.5% over the last twelve months. Furthermore, Core prices rose at an annualized 2.1% and 0.1% inter-month.

Still in the US calendar, Initial Claims rose at a weekly 211K, prompting the 4-Week Average to 216.0K from 221.5K.

In the meantime, DXY is posting losses for the first time after four consecutive daily gains, retreating further after clinching multi-month peaks in the 93.40/45 band on Wednesday.

US Dollar relevant levels

As of writing the index is retreating 0.55% at 92.61 and a breakdown of 92.53 (10-day sma) would expose 91.96 (200-day sma) and finally 91.70 (50% Fibo of 95.15-88.25). On the upside, the initial barrier aligns at 93.42 (2018 high May 9) followed by 93.68 (78.6% Fibo of 95.15-88.25) and then 94.22 (high Dec.12 2017).