US Dollar accelerates the downside below 90.00

• DXY breaks below 90.00.
• Risk-rally behind the selling bias in USD.
• US CPI, retail sales in focus tomorrow.

The greenback, in terms of the US Dollar Index (DXY), continues to trade on the defensive so far this week, breaking below the key support at the 90.00 handle.

US Dollar focused on US data

The index has intensified the weekly correction lower as the risk-rally sparked on Monday remains unabated.

In fact, DXY tested fresh lows in the sub-90.00 area for the first time since February 2 during early trade, although it has managed to find quite decent support near 89.80 for the time being.

USD stayed apathetic after President Trump unveiled plans to boost infrastructure. His plans, however, are poised to face strong resistance from policymakers, both Republicans and Democrats.

The offered bias in the buck came along a drop in yields of the US 10-year note to the 2.82% region, or daily lows, after climbing to multi-year peaks in the 2.90% neighbourhood earlier in the session.

Looking ahead, Cleveland Fed L.Mester (2019 voter, hawkish) will discuss monetary policy later today, while the NFIB index is only due in the US docket ahead of tomorrow’s more relevant CPI and retail sales for the month of January.

US Dollar relevant levels

As of writing the index is losing 0.36% at 89.77 facing the immediate support at 88.55 (low Feb.2) seconded by 88.42 (2018 low Jan.25) and finally 86.85 (weekly trend line off 72.70). On the upside, a break above 90.57 (high Feb.8) would target 90.70 (high Jan.22) en route to 90.98 (high Jan.18).