US Dollar tumbles to lows near 92.70

• DXY drops to 2-month lows near 92.70.
• Advanced manufacturing PMI missed expectations.

The US Dollar Index, which gauges the buck vs. its main rival currencies, has intensified the decline to fresh multi-week lows in the 92.75/70 band.

US Dollar in 2-month lows

The index remains under heavy downside pressure so far this week and is currently recording fresh 2-month lows in the vicinity of 92.70.

There is no extra catalyst for the acceleration of the down move other than increasing uncertainty around the US political scenario coupled with lack of headlines on the US tax reforms and a dovish perception of the recent FOMC minutes.

In this regard, the Committee revealed members expressed their concerns over the absence of upside traction in US inflation, particularly in the current context of a tighter labour market. These views fell in line with prior comments by Chief J.Yellen, who also added that raising rates too quickly could hamper the road of inflation to the Fed’s 25 target.

It is worth metioning that the probability of a rate hike by the Federal Reserve at the December 13 meeting stays above 91% according to CME Group’s FedWatch tool, based on Fed Funds futures prices.

US Dollar relevant levels

As of writing the index is retreating 0.42% at 92.73 and a breakdown of 91.78 (low Sep.22) would open the door to 91.53 (low Sep.20) and finally for 91.01 (low Sep.8). On the other hand, the initial hurdle lines up at 93.51 (55-day sma) seconded by 93.73 (10-day sma) and then 94.17 (low Nov.21).