US Dollar weaker, holding on to 90.00

• DXY sunk to as low as the 89.90 region, where met some support.
• The greenback faded the initial spike to the vicinity of 90.40.
• US political uncertainty, tariffs, FOMC all weighing on the buck.

The US Dollar index (DXY) – which tracks the greenback vs. a basket of its main rival currencies – has retreated from session tops in the 90.40 area and is now looking to stabilize in the 90.00 neighbourhood.

US Dollar looks to risk, FOMC

The index is now trading within the negative territory amidst heightened uncertainty in the US political scenario, ad market participants continue to adjust to recent tweets by President D.Trump with the FBI and Mueller in centre stage.

In addition, fresh and positive headlines from the EU/Brexit negotiations and Reuters’s story on the ECB lent extra legs to both the Sterling and the single currency in detriment of the buck.

In the meantime, USD is expected to remain in centre stage in light of the upcoming FOMC meeting (Wednesday), the G-20 gathering and the potential implementation of tariffs on US imports from China at some point in the second half of the week.

In the positioning universe, speculators turned long on USD positions for the first time since January 9, as per the latest CFTC report for the week ended on March 13.

US Dollar relevant levels

As of writing the index is losing 0.17% at 90.04 and a breakdown of 89.88 (23.6% Fibo of 95.15-88.25) would open the door to 89.56 (low Mar.14) and then 89.41 (low Mar.7). On the other hand, the next up barrier aligns at 90.57 (high Feb.8) seconded by 90.93 (high Mar.1) and finally 91.00 (high Jan.18).