Analysis of the past week

The outgoing week of August was very full of economic news and unexpected events, which had a key impact on the market. General moods and risks associated with geopolitics remained as the main drivers of the market. As a result, macroeconomic statistics faded into the background, and some of the significant news was simply ignored because of the investors’ escape from risks.

So, the whole week can be characterized as fully subject to moods and risks. As a result, the week turned out to be very different for most major world currencies. The beginning of the week was an extension of the previous one, and was mainly focused on the growth of safe assets and the US dollar, which were limited to overbought.

The turning point of the trading was the news that China sent a delegation to the US, whose task was to find a compromise in the US and China trade confrontation. Despite the fact that there are no official results of the talks, the moods regarding the risks have improved noticeably. But it’s too early to talk about the market reversal.

Technically, the dollar index for the week is closed at the opening level, thus indicating a slowing of the uptrend on the withdrawal from psychology 97.00. Support under these conditions is located at the levels: 96.20 and 96.00, the test of which will largely depend on the general mood in the market, which in turn depends on the  US and China negotiations  and the crisis of the Turkish lira.

Hanzenko Anton