Analysis of the American session - Ester Holdings

Analysis of the American session

The US trading session on Friday closed with a further collapse of the US dollar amid rising trading risks and an increased likelihood of lower interest rates in the United States. The reason for this was the escalation of trade tension between the US and China and the possibility of introducing US trade duties against Mexico. Amid worsening trading risks, the US dollar accelerated its decline against a basket of major competitors, helped by rising expectations of lower interest rates in the United States.

So, trading at the American session closed with the update of the dollar index of the last weeks low at 97.60. This caused a significant oversold of the American dollar against a basket of competitors and thus could have led to a more significant reduction in the US Federal Reserve rates during the current year. The US dollar index is adjusted in the lateral range from 97.60-50 to 97.80-90.

Fig. The US dollar index chart. The current price is 98.70 (10-year US government bonds yield is the blue line)

Read also: “Prospects for the euro based on the ECB policy”

Andre Green


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