US Dollar clings to daily gains near 92.80

The US Dollar Index – which tracks the buck vs. a basket of its main rival currencies – is posting marginal gains on Tuesday following yesterday’s sell off to fresh cycle lows near 92.60.

US Dollar hurt by US politics

Another scandal at the White House on Tuesday saw USD-bears having another festival, dragging the index to the vicinity of 92.60, levels last traded in May 2016.

In fact, the White House’s Communications Director A.Scaramucci was fired after 10-days of being appointed, adding further effervescence to the already unstable US political scenario and thus sparking a wave of selling pressure around the buck.

In the meantime, the outlook for USD stays bearish, having lost nearly 11% since January’s fresh 15-year tops in the 103.80 region.

The down move has accelerated since President Trump took office in late January, while dwindling convictions by investors of the ability of the Trump’s administration to deliver a tax reform and replace ‘Obamacare’ have also collaborated with the decline. The subsequent Russia-gate and the never-ending conflict between Trump and the US media just keep adding to the rapidly deteriorating picture around USD.

In the US data space, the ISM manufacturing will be the salient point today, seconded by Markit’s manufacturing PMI and July’s personal income/spending.

US Dollar relevant levels

The index is gaining 0.11% at 92.77 and a breakout of 93.59 (10-day sma) would aim for 94.11 (high Jul.26) and then 94.56 (21-day sma). On the downside, the immediate support emerges at 92.64 (2017 low Jul.31) seconded by 92.52 (low Aug.24 2015) and finally 91.88 (2016 low May 3).