Analysis of the past day

On Wednesday, the US dollar index closes trading against the basket of competitors with the update of a low at the level of 97.00. The main decline of the American dollar can be traced against European and commodity currencies. Strengthening commodity currencies was caused by the continued optimism in the stock markets and the positive dynamics of raw materials. Support for European currencies have data on the UK. So, the message that Prime Minister T. May was trying to negotiate with the opposition significantly increased optimism about Brexit.

Stock indices close on the day in positive territory on the general growth of optimism and the expectation of the results of trade negotiations between the USA and China (Nikkei 225 +0.97; DAX +1,60; FTSE 100 +0.20; Dow 30 +0.10).

The US dollar index slowed the two-week upward dynamics. In fact, the update of the low at 97.00 indicates a slowdown in the upward dynamics of the American dollar. Talking about the reversal will be possible after fixing below the level of 97.00. Resistance marks are: 97.20 and 97.40-50.

The US dollar index chart. The current price is 97.10 (10-year government bonds yield is the blue line)

Hanzenko Anton