Analysis of the past week

The past week was marked by a collapse of world stock indices, which was caused by comments on the formation of a bubble in the US stock market. As a result, the decline in stock indices on Monday named “black Monday”. After the widespread decline in stock markets under pressure were commodity assets and most of the world’s currencies.

The exception was the Japanese yen, as a classic asset of a safe haven, and the US currency, which received support for rising profitability of the US government bonds which are traded near four-year highs. The Swiss franc and gold also received support on the escape from risks, but their dynamics was limited by the growth of the American.

Thanks to the flight from risks week, the US dollar index managed to significantly adjust, returning to the highs of four weeks. Despite this, the US currency remains in a downward trend, limited to resistance levels of 90.40-60 and 91.00.

Graph of the US dollar index. The current price is 90.30.

Hanzenko Anton