Analysis of the past week

The last week of August turned out to be very positive for the American currency, which fully recovered after the collapse last week. A complete change in the course of the trade war from the growing confrontation to productive negotiations was the reason for the restoration of the American dollar. At least that’s what the US and China say. Risky assets received support amid a reduction in the risks of an aggravation of the trade war, but their growth was limited by the strengthening of the US dollar.

The US dollar index showed a growth of about 1.3% over the week, which corresponds to one of the strongest strengthening in recent months. With all this, the main support for the American dollar was provided by optimism about trade talks. This indicated the resumption of a two-month uptrend in the dollar, but the further strengthening of the American dollar will be limited to levels: 99.00, 99.30-40.

Fig. The US Dollar Index Chart H4. Current price – 97.80 (10-year government bonds yield – blue line)

Anton Hanzenko