US Dollar plummets to 2-month low near 94.80

The greenback is sharply lower vs. its main competitors on Tuesday, sending the US Dollar Index back to sub-95.00 levels, or fresh 2-month lows.

US Dollar weaker ahead of US CPI

The index has accelerated its decline today, quickly leaving behind the critical support at the 95.00 handle and briefly testing the 94.80 region in response to an abrupt wave of selling pressure in USD/JPY, which later supported the upside sentiment in the rest of the risk-associated space.

Later in the NA session, USD will take centre stage in light of the release of July’s inflation figures gauged by the CPI, followed by Housing Starts, Building Permits, Industrial Production and speeches by FOMC’s Lockhart and Bullard.

US Dollar relevant levels

The index is losing 0.70% at 94.96 and a breakdown of 94.26 (up trend off 2016 low at 91.88) would open the door to 93.41 (low Jun.8) and then 93.03 (low Jun.23). On the other hand, the initial hurdle aligns at 96.50 (high Aug.5) followed by 97.05 (78.6% Fibo of July-August drop) and finally 97.62 (high Jul.25).