The US Dollar Index – which measures the buck vs. its main rivals – continues to shed ground on Tuesday, now testing the area of daily lows in the 97.20 region. Soon after reaching fresh tops in the 97.70 region, the index sparked a moderate correction lower to the current vicinity of the key support at 97.00 the figure. The move appears exacerbated after US PCE, personal income and personal spending failed to ignite fresh buying interest. In addition, consumer confidence gauged by the Conference Board came in short of expectations in May, dropping to 117.9 from 119.4 (revised from 120.3). The current leg lower in the buck is giving extra oxygen to the risk-associated space, although the stance on USD should remain constructive in the near term following high bets on a Fed’s move at the June meeting. In fact, CME Group’s FedWatch tool is pricing in the probability of a rate hike next month at just below 90%. Furthermore, Dallas Fed R.Kaplan (voter, hawkish) said earlier in the session that two extra rate hikes this year appear appropriate. Later in the NA session, FOMC permanent voter L.Brainard (centrist) is due to speak. The index is losing 0.10% at 97.23 facing the immediate support at 96.70 (2017 low May 23) followed by 95.91 (low Nov.9 2016) and then 94.95 (low Sep.22 2016). On the upside, a break above 97.64 (high May 30) would aim for 98.01 (high May 17) and finally 98.14 (20-day sma).