USD extends weekly losses

Greenback dropped across the board on Thursday, extending the weekly decline and posted the lowest close in months against many currencies. No particular reason was behind the decline the US dollar. The market continues to price in no rate hike from the Federal Reserve at the September and November meetings.

The US Dollar index, which gauges the US dollar against its main competitors, is losing 0.60% on Thursday and is down almost 1.75% from the level it had a week ago. It is about to post the fifth decline in a row and the lowest close since June 24, the day of the Brexit vote.

Support at 94.00

The DXY moved with a downside bias during all day and bottomed at 94.05. The area around 94.00 is the key immediate support area, below here the 92.00 handle and 2016 lows would gain attention. To the upside, it needs to rise back above the 95.20/30 area, where the 20-day moving average stands in order to remove the bearish pressure.

Regarding US data, on Thursday jobless claims and the Philly Fed showed no surprises. The calendar is light during the next days, until the Jackson Hole symposium, that will start next Thursday.