Analysis of the past day

On Monday, trading in major currency pairs was aimed at reducing risky assets and strengthening the safe haven assets. The reason for the flight of investors from risk was the weak statistics on China, which heightened concerns about the global economy.

Weak data on China and growth of pessimism, first of all, affected the stock markets, which returned to decline after a brief increase last week and increased the demand for safe assets (Nikkei 225 + 0.97 DAX -0.20; FTSE 100 -0 , 70; Dow 30 -0.40).

The American currency was supported by a flight from risk, but was limited to political risks in the United States. Thus, the partial  government shutdown in the United States is the main risk factor for strengthening the American dollar. As a result, the US dollar index was trading in the side channel from 95.50 to 95.70, which actually corrected against Friday’s growth and retained the potential for growth on the formation of the flag.

The US dollar index chart. The current price is 95.60 (10-year government bonds yield is the blue line)

Hanzenko Anton