Analysis of the past day

At the opening of  Monday trades, the multidirectional dynamics of the main currency pairs was traced. The opening of the week was very pessimistic, causing pressure on stock exchanges and commodity currencies, supporting the safe haven assets. The reason for pessimism was the preservation of geopolitical risks, which were reinforced by negative sentiment in the US dollar and the upcoming Fed meeting, which is expected to slow down the rate hike this year.

Stock markets opened the week with a decline in general pessimism and investors’ flight from risk (Nikkei 225 -0.65 DAX -0.70; FTSE 100 -0.90; Dow 30 -1.30).

The US dollar index opened the week by maintaining a downward trend, despite the expectation of a move against Friday. At the same time, the US dollar adjusted against commodity currencies, but weakened against safe currencies and the euro. It indicated the continued downward trend in the American dollar, which is limited to oversold.

The US dollar index chart. The current price is 95.70 (10-year government bonds yield is the blue line)

Hanzenko Anton