Analysis of the past day

On Tuesday, July 3, the US dollar index showed the opposite movement against Monday, which was caused by the collapse of the coalition in Germany and the growth of optimism on the market. The weakening of political risks in Germany was achieved thanks to a compromise on the migration law in the euro area, which had a very positive impact on the euro. Additional pressure on the American dollar had a positive dynamics of stock indices, which caused a significant strengthening of commodity currencies against the American dollar.

Stock exchanges during the day were trading quite positive on the correction and reduction of pessimism in China, which triggered an increase in optimism on the market (Nikkei 225 -0.12, DAX +1.00, FTSE 100 + 0.80, Dow 30 +0.30) .

Following the Tuesday, the American dollar almost completely lost the previously earned points on political risks in Germany. As a result, the US dollar index returned to support levels: 94.60 and 94.60 and the lower border of the upward channel. At the same time, the further decline of the American dollar is limited by its oversold.

US dollar index Graph. The current price is 94.60 (the yield of 10-year government bonds is a blue line)

Hanzenko Anton