Analysis of the American trading session

During the American session on Monday, February 26, 2018, the US dollar maintained a strong position against most of the major market currencies. The main support for the US currency was provided by the growth in the yield of the US government bonds in the first half of the US trading. Further strengthening of the US currency was restrained against the background of weak data on sales of new housing in the US. See “The US Dollar remains under Pressure: Data on sales of New Housing in the US.“

Also, investors remain somewhat cautious about the US currency, pending Fed Chairman Powell’s speech, who on Tuesday will speak in Congress with a six-month report on monetary policy.

The British pound declined against the US dollar against the background of the general strengthening of the US currency, as well as in the connection with the EUR/GBP cross-rate rally. The catalyst for the beginning of the pound’s decline against the US dollar was a partial profit-taking by investors, after a significant strengthening of the British currency in the first half of Monday’s trading.

Alexander Sivtsov