Analysis of the past day

On Wednesday, the US dollar weakened against a basket of competitors against the backdrop of the strengthening of the euro and the British pound, which was caused by the expectation of voting results in the UK. So, earlier, the Prime Minister of Great Britain expressed a vote of no confidence, which caused an increase in political risks and the promotion of the process on Brexit. In the end it was the reason for renewed optimism in Europe.

Stock exchanges throughout the day traded above zero on the reduction of tension around the trade standoff between the United States and China and the release of a board member of a large Chinese company (Nikkei 225 +2.22; DAX + 1.60; FTSE 100 +1.20; Dow 30 +1 ,50).

By the end of the day the US dollar index returned to the support of 97.00, which completely corrected against yesterday’s growth and called into question keeping the upward trend in the US dollar index, which was traced from the end of November. It should be noted that the further decline of the American dollar is limited by oversold dollar and support levels: 97.00 and 96.80.

The US dollar index chart. The current price is 97.00 (10-year government bonds yield is the blue line)

Hanzenko Anton