Analysis of the past week

The last week of October was very volatile due to the publication of the meeting results of the Central Bank of Canada and the United States.

• So, the Canadian dollar collapsed, following a meeting of the Bank of Canada, while interest rates in Canada were maintained.
• The US Federal Reserve cut key interest rates by 25 b.p. and, and the tone of the Fed has become softer, which caused an increase in market expectations regarding a further reduction in the US rates.

The US dollar index for the week showed a volatility of about 0.85%, most of which fell on the publication of the Fed meeting results. This week was extremely unsuccessful for the American dollar because it lost -0.75%, actually approaching the October low at 97.20 and resuming the general downward trend of the monthly trend. Significant support is located at levels: 97.00 and 96.80, resistance: 97.50 and 97.80.

Fig. The US Dollar Index Chart H4. Current price – 97.20 (10-year government bonds yield – blue line)

Hanzenko Anton