Analysis of the American session

Friday’s trading closed with multidirectional dynamics of the US dollar against a basket of competitors, but the day was actually closed with an update of the recent weeks low. Despite positive Friday data on the US employment, the American dollar accelerated the decline due to weak data on business activity in the US manufacturing sector. They reinforced fears of a slowdown in the US economy and increased pressure on the American dollar.

In addition to pessimism regarding the American dollar, it is worth to note that it is oversold, which subsequently acts as a limiting factor for the weakening of the US dollar. This preserves the potential to move against Friday, which, in turn, will be limited by the downward trading channel and the resistance of 97.30. Support are the marks: 97.10 and 97.00.

Fig. US dollar index chart. Current price – 97.20 (10-year US government bonds yield – blue line)

Read also: “What to expect from the Bank of England in the face of a tough Brexit”

Andre Green

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