Analysis of the past day

On Thursday, February 1, the US dollar resumed the decline against the main competitors. As a result, the American index approached yesterday’s low. Despite very positive data on business activity in the US manufacturing sector, the market preferred to sell the American currency after the growth. The growth of short-lived optimism for the American was caused by the increase in the likelihood of a rate hike in the US already in March, but towards the end of the day this probability decreased, as did the dollar’s position.

The negative dynamics of the stock indices (Nikkei 225 +1,60, DAX -1,50, FTSE 100 -0,60, Dow 30 -0,15) was an additional factor in the decline of the US currency. Since the beginning of the day, indices are declining, putting pressure on the US currency.

At the same time, the dynamics of the market and the US dollar as a whole remains restrainedly negative, due to the expectation of tomorrow’s data on employment in the US. The deterrent effect on the dollar is caused by the expectation of these news and also restores pressure on the American.

Graph of the US dollar index. Current price – 88.70

Hanzenko Anton