Analysis of the American session

The American trading session on Wednesday closed with a moderate growth of the dollar index against a basket of competitors, which was triggered by the US Federal Reserve meeting results. According to the results of which the key interest rate decreased by 25 b. p. to the mark of 2.00%. But the US dollar strengthened despite the reduction in rates that the market expected.

The reason for the growth of the American dollar was the more hawkish tone of the Fed, which noted the steady growth of the economy, labor market and household spending, indicating a moderate economic growth. But most importantly, the Fed indicated that it does not expect the US rates cuts in the future, which was the reason for the strengthening of the American dollar.

As a result of trading Wednesday, the US dollar index updated a high at 98.70. But the growth of the US dollar was limited by Tuesday highs and the remaining risks of a slowdown in the US economy. As a result, the American dollar remains constrained by restrained upward trading dynamics and a weekly flat, limited by support levels: 98.20 and 98.00, resistance: 98.60 and 98.80.

Fig. US dollar index chart. Current price – 98.40 (10-year US government bonds yield – blue line)

Read also: “U.S. trade opposition.
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Andre Green

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

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