US Dollar remains vulnerable around 89.60

• The index stays under pressure near the 89.60 area.
• Easing trade war fears prompted US stocks to open higher.
• US Producer Prices surprised to the upside during March.

The US Dollar Index (DXY), which tracks the greenback vs. its main rivals, remains under heavy pressure today and navigates near session lows around 89.60.

US Dollar unfazed by upbeat data

The greenback is extending the correction lower from last week’s tops in the 90.60 zone in spite of shrinking concerns over the potential US-China trade war, particularly following recent comments by Presidents Trump and Xi Jinping.

Adding further selling pressure to the buck, ECB’s board member E.Nowotny said earlier in the session that the central bank could terminate its bond-buying programme at some point later in the year, lifting EUR/USD to fresh 2-week peaks.

On the data front, USD stayed apathetic after US Producer Prices rose above expectations during March, all ahead of tomorrow’s more relevant CPI figures and the FOMC minutes.

US Dollar relevant levels

As of writing the index is losing 0.31% at 89.56 facing the next support at 89.41 (low Mar.7) seconded by 88.94 (low Mar.27) and then 88.25 (2018 low Feb.16). On the other hand, a breakout of 90.60 (high Apr.6) would open the door to 90.89 (38.2% Fibo of 95.15-88.25) and finally 90.93 (high Mar.1).