Analysis of the past day

The new work week continued the dynamic of the strengthening of the American currency against the euro and gold, which was due to a decrease in overall geopolitical risks. Despite the strengthening of the US dollar, commodity currencies continued to remain quite restrained in the face of the onslaught of the dollar, as did the Japanese yen.

Stock indices showed a steady growth in the reduction of tension in the trading confrontation and optimism before the resumption of growth in the global economy (Nikkei 225 +1.02; DAX +0.30; FTSE 100 +0.60; Dow 30 +0.10).

On Monday trades the US dollar index updated last week’s high at 96.80, continuing to receive support from optimism and maintaining the upward trend of Friday. Reducing the profitability of the US state bonds and the general overbought of the dollar will limit its further growth. Therefore, a correction is possible from the level of resistance 96.70-80.

The US dollar index chart. The current price is 96.70 (10-year government bonds yield is the blue line)

Hanzenko Anton