Analysis of the past day

On Thursday the US dollar was under pressure amid aggravating political relations between the US and China because of the arrest of a member of the Huawei company. The main factor in the growth of negative market sentiment is the fear that the United States and China will not only not adhere to the previously announced agreements, but also strengthen the trade standoff.

Stock indices traded a lot below zero during the day amid growing risks and fears of exacerbated trade opposition (Nikkei 225 -1.9; DAX-3.10; FTSE 100 -2.90; Dow 30 -2.20).

By the end of the day the dollar index weakened significantly due to weak US statistics and the risks of increased trade opposition with China. As a result, the minimum at 96.50 was updated and the upward trend in the dollar was slowed down. But it is worth noting that the further decline of the American dollar is limited by its oversold. Therefore, a correction to the resistance levels is possible: 96.80 and 97.00.

The US dollar index chart. The current price is 96.70 (10-year government bonds yield is the blue line)

Hanzenko Anton