Analysis of the past day

As a result of trading on Wednesday, the US dollar strengthened significantly against a basket of major competitors, especially against European currencies. The reason for the general growth of the dollar in conditions of low activity was the possibility of reducing the political risks that were previously caused by concerns about the US government partial shutdown. The actual preparations of the EU and UK governments for hard Brexit became as a factor of a significant weakening of European currencies, mainly the British pound against the dollar.

Stock markets were also under pressure against the background of the strengthening of the American dollar. They remained under pressure from geopolitical risks and the flow of assets from stock markets to currency markets against a background of low activity and risks (Nikkei 225 -0.31; DAX-0.15; FTSE 100 -0, 30; Dow 30 -1.00).

At the end of the day, the US dollar index closes Wednesday’s trading near the highs at 96.70-80, indicating the formation of an upward trend, which, in turn, is limited by the overbought of  American dollar and the psychological mark of 97.00.

The US dollar index. The current price is 96.80 (10-year government bonds yield is the blue line)

Hanzenko Anton