Analysis of the American Trading Session

Trading on the American session on Thursday closed with a restrained decline in the dollar index against a basket of competitors. Weak data on business activity in the US and low-key expectations regarding the US employment report, which will be released on Friday, had a pressure on the American dollar. Also it is noteworthy the persistence of political tension between the Fed and the Trump administration, which continues to criticize the US Federal Reserve policy aimed at interest rates hike. Therefore, even if an employment data in the United States will be positive, they will have little effect on the possibility of tightening monetary policy in the United States.

Technically, the US dollar index maintains an upward trend, being above the support of 96.20. At the same time, pessimistic expectations continue to put pressure on the dollar, which is limited in decline by the levels: 96.20, 96.00 and 95.70.

The US dollar index chart. The current price is 96.20 (10-year government bonds yield is the blue line)

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Andre Green

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