Analysis of the American session

Trading in the US trading session on Tuesday closed with a significant decrease in the US dollar index against a basket of competitors. The reason for the weakening of the American dollar was a number of factors. Thus, the British pound showed the main strengthening against the American dollar, which received a support from the statements of German Chancellor A. Merkel. Which actually became the reason for the sale of the American dollar. An additional driver for the sale of the US dollar, which continued the decline of the American dollar, was the expectation of soft rhetoric from the FOMC protocol and Fed rhetoric.

Thanks to which the American dollar has significantly slowed down the uptrend, returning to support 98.20. Pending Fed statements remains a major limiting factor for the American dollar. Statements about stimulating the US economy may increase a pressure on the dollar.

Fig. The US dollar index chart. Current price – 98.20 (10-year US government bonds yield – blue line)

Read also: “U.S. Trade Confrontation.
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Andre Green

Earn with the help of the trade service on the news Erste News!

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