Analysis of the American session

Thursday’s trading ended in a decline in the US dollar across the market. The reason for this was the growth of pessimism about the US – China trade talks. It is also worth to note the technical correction of the American dollar position on uncertainty and risks. In addition to the US dollar, the British pound also showed a significant increase in volatility, which received support from the risk reduction of the tough Brexit. The reason for this was news that the Ireland’s question in Brexit could be resolved in the near future.

The US dollar index on Thursday returned to the October low, which was updated on Friday trades. The decline in American dollar is largely due to geopolitics and trade negotiations. A further decline in the American dollar is limited by support levels: 98.50 and 98.20.

Fig. US dollar index chart. Current price – 98.50 (10-year US government bonds yield – blue line)

Read also: “Should we expect the currency intervention from the Bank of Japan?”

Andre Green

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

Topical articles of the trader’s blog:

1. Cloudy prospects for the  oil market 
2. Risks of global economic slowdown are escalating
3. What indicators choose Forex traders (Part 2)

Current Investment ideas:

1. One more opportunity to earn in October! Sell ​​#CAT shares now!
2. Several reasons to buy Cisco Systems, Inc. shares in October. Let’s earn Together!
3. Technology giant Microsoft is getting ready to storm new highs! Let’s make money on it!