Analysis of the past day

On Thursday, June 21, the US currency weakened against the basket of major competitors, amid optimistic signals from the Bank of England and the Swiss Central Bank, which left benchmark interest rates unchanged at the end of the meetings. The Bank of England, in turn, shifted its priorities to a tightening of monetary policy, which eventually caused growing fears in the market and the sale of the American dollar. Expectations of tightening rates in the UK caused a wave of optimism in other countries, which can also tighten monetary policy in the future.

Stock markets didn’t share the optimism of the currencies, remaining under pressure to reduce the cost of raw materials (Nikkei 225 +0.61, DAX -1.60, FTSE 100 -1.00, Dow 30 -0.80).

As a result, the US dollar index closes the day under pressure of correction and decline in yield of US state bonds. So, the American dollar returned to the opening level of the week, completely losing the profit of the last days on the sale of the euro. The main support are the marks: 94.80 and 94.60.

US dollar index Chart. The current price is 94.80 (the yield of 10-year government bonds is a blue line)

Hanzenko Anton