The greenback is now the weakest major currency on the day as the commodity currencies overtake the dollar
Dollar bulls are really taking it on the chin today (and for the year), as the dollar slips further on the day. USD/JPY looks set to break lower while cable breaks above 1.4000 handily now. Even commodity currencies have pared loses against the dollar and are posting decent gains on the day.
The USD sentiment remains so fragile, it feels like just about anything can blow it over at this point and send the currency lower. The dollar index is now below 90.00, and technical levels show that there's still further room to run on the downside.
The next support level in the index sits at 88.42 - which is the 61.8 retracement level. While there are some quarters in the market still expecting the dollar to rebound on the back of tax reforms boosting growth and the Fed possibly raising rates at a faster pace, a simple market analogy says "never catch a falling knife". That is a fitting one for what we see in the chart.
