US Dollar hurt by ‘Trumpcare’, testing 99.00

The greenback – in terms of the US Dollar Index – is sharply lower at the beginning of the week, currently hovering over the critical support at 99.00 the figure.

US Dollar holds on to 99.00

The index has plummeted to the 99.00 area, or fresh YTD lows, after the ‘Trumpcare’ bill failed to see the light on Friday, sparking concerns on the ability of the Trump administration to pass further fiscal reforms, as promised earlier in the year.

The buck came down to test levels last seen in early November near 99.00 the figure, where it is now attempting to consolidate ahead of the opening bell in Euroland.

On the positioning front, USD speculative net longs have retreated to 3-week lows on the week to March 21 as per the latest CFTC report, collaborating with the bearish note surrounding the buck.

Nothing noteworthy in the US data space, as only Chicago Fed C.Evans (voter, dovish) is due to speak later in the NA session.

US Dollar relevant levels

The index is losing 0.54% at 99.05 facing the next support at 98.56 (200-day sma) followed by 98.24 (10-month support line) and finally 96.94 (low Nov.4 2016). On the upside, a break above 99.81 (high Mar.24) would aim for 100.27 (high Mar.20) and then 100.74 (55-day sma).