US Dollar plummets to lows near 92.80 on Yellen

The US Dollar Index has quickly broken below the key support at the 93.00 handle today following the steady-to-dovish stance from Chief Yellen at the Jackson Hole Symposium.

US Dollar offered on Yellen, now looks to Draghi

The index came down to test fresh 3-week lows in the 92.80 area after Janet Yellen stayed muted on key issues like the Fed’s balance sheet reduction and the interest rates path, disappointing market participants and pouring (very) cold water on expectations of a more sustainable recovery in the buck.

Looking ahead, ECB’s M.Draghi is also due to speak. Despite unabated speculations on a potential hawkish message, prior comments have already ruled out any announcement on monetary policy.

US Dollar relevant levels

As of writing the index is losing 0.49% at 92.77 facing the immediate support at 92.55 (2017 low Aug.2) seconded by 92.62 (low Aug.24 2015) and finally 91.92 (low May 3 2016). On the other hand, a breakout of 93.42 (10-day sma) would open the door to 93.63 (high Aug.23) and finally 94.14 (high Aug.16).