US Dollar sinks to daily low near 101.00 handle

The greenback, as measured by the key US Dollar Index, added on to its recent corrective pull-back from 14-year highs and is now flirting with lows near 101.00 handle. 

The greenback came under some fresh selling pressure during early European session and reversed previous session’s tepid recovery gain. On Monday, the index perked up in wake of a fresh wave of global risk-aversion led by amplifying worries of a 'hard Brexit'. The gains, however, turned short-lived as uncertainty surrounding the incoming Trump administration's fiscal policies continued fueling long-dollar unwinding trade.

In absence of any fresh fundamental development, a strong short-covering rally witnessed around the GBP/USD major seems to be only factor collaborating to the greenback’s sharp slide in the past hour. 

Investors on Tuesday will remain focused on the much awaited UK Prime Minister Theresa May’s Brexit speech, which is expected to infuse a fresh bout of volatility in the FX market and eventually provide some impetus. 

Later during the day, Empire state manufacturing index would be looked upon for short-term trading impetus. Investors, however, are likely to remain on the sidelines ahead of Donald Trump's inauguration as the US President on Friday and might thus, keep the greenback suppressed.