Analysis of the past day

On Tuesday, May 1, at a reduced activity due to the day off in the euro area, the US currency managed to approach the 2018 high at 92.60. The strengthening of the American, in addition to low activity and weak statistics on the UK, was caused by the resumption of growth in the profitability of the US state bonds.

As a result, the US stock markets resumed their decline (Nikkei 225 +0.18, DAX —, FTSE 100 +0.10, Dow 30 -1.00). Preservation of upward dynamics in terms of the US state bonds will continue to exert pressure on stock indices. But the long-term growth of the American on this driver should not be expected.

At the moment, the US dollar index remains in an upward trend, limited to overbought and highs of this year. At the same time, the levels of 92.60 and 92.80 are a significant resistance, from which one should expect a repulsion.

Graph of the US dollar index. The current price is 92.50 (the yield of 10-year state Bonds is a blue line)

Anton Hanzenko