US Dollar tumbles to lows near 99.50

So much for the spike to 100.30. The greenback – tracked by the US Dollar Index – has now plummeted to fresh daily lows in the mid-99.00s.

US Dollar weaker post-Payrolls, mixed data

The index has quickly surrendered the initial bull run to session tops near 100.30 after the US labour market report left a negative sentiment to investors, who gauged as negative the lack of traction from wage inflation.

Further data saw Factory Orders and Markit’s Services PMI bettering estimates, although the ISM Non-manufacturing came in below expectations, removing further shine from the docket.

All in all, the poor results from Average Hourly Earnings (0.1% act.) seem to be undermining market expectations of further tightening by the Federal Reserve, impacting on US yields and in turn on the buck, which is now on its way to close its sixth consecutive week with losses.

US Dollar relevant levels

The index is retreating 0.28% at 99.55 and a breach of 99.19 (low Feb.2) would open the door to 98.92 (61.8% Fibo of the Nov-Jan. up move) and then 96.94 (low Nov.4). On the other hand, the next hurdle lines up at 100.30 (high Feb.3) followed by 100.42 (high Jan.31) and finally 101.02 (high Jan.30).