US Dollar cuts losses, still depressed around 96.50

The US Dollar Index, which tracks the buck vs. its main rivals, is extending its weekly drop to the mid-96.00s for the time being.

US Dollar supported near 96.20

The index has been retreating since Monday’s multi-month tops around 97.60 following a renewed selling pressure around USD along with a pick up in the demand for the Japanese yen in response to speculations that the BoJ could disappoint markets at tomorrow’s meeting.

Today’s results in the US calendar have not helped the greenback either, with Initial Claims ticking higher to 266K during the week ended on July 22 and Goods trade deficit expanding to $63.3 billion during June.

While market participants continue to digest the unexpected dovish tone delivered by the FOMC on Wednesday, the next relevant release will be the advanced print of the GDP figures for the second quarter (Friday), expected at

2.6%.

US Dollar relevant levels

The index is losing 0.31% at 96.45 and a break below 95.51 (55-day sma) would expose 95.38 (low Jul.5) and finally 95.12 (100-day sma). On the other hand, the next resistance lines up at 97.62 (high Jul.25) followed by 98.58 (high Mar.1) and then 99.95 (high Jan.21).