Analysis of the American Trading Session
Friday’s US session closed with a general sale of the US currency. The reason for the decline of the American dollar became very dovish expectations from the upcoming meeting of the US Federal Reserve. Earlier, the Fed was expected to make two rate hikes this year. But after the last hike last year, the Fed’s rhetoric changed its tone abruptly from hawk to dovish, which was due to open pressure on the Fed by the US President Trump. As a result, the Fed succumbed to pressure and reduced tightening measures significantly, which affected the general expectations of the market and the US currency.
The US dollar index closed the week in the red, indicating a slowdown in the upward trend. But it is also worth noting the significant oversold of the US dollar, which will limit its further weakening. Therefore, after the rapid decline of the American dollar on Friday, a correction is expected on Monday.
The US dollar index chart. The current price is 96.80 (10-year government bonds yield is the blue line)
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Andre Green
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