Analysis of the past day
On Thursday, trading in the foreign exchange market was mainly aimed at correcting the US dollar against yesterday’s decline. The recovery of the American dollar was largely traced against European and safe haven currencies. An additional factor to the strengthening of the American dollar was restrained negative dynamics of stock indices.
Pressure on stock exchanges was caused by a decrease in risk appetite after long negotiations between the USA and China. As a result, restrained sentiments returned to the stock exchanges, which against the background of growth tend to decline more (Nikkei 225 -1.36 DAX +0.20; FTSE 100 +0.40; Dow 30 +0.00).
As the result of trading on Thursday the US dollar index closes the day with restrained growth on the correction after yesterday’s decline, limited to resistance levels: 95.50 and 95.70. The limiting factor for the dollar is the Fed’s soft policy and increasing political risks in the United States.
The US dollar index chart. The current price is 95.40 (10-year government bonds yield is the blue line)