Analysis of past week

This week was saturated with significant statistics, which disappointed more the market, putting pressure on national currencies. So, during the week weak data on GDP and inflation in the UK accelerated the sale of the British pound, which is trading near monthly lows. Additional pressure on the British pound comes from Brexit, the main factor of uncertainty.

The US dollar was under the pressure from statistics, but it closes the week with restrained growth despite this pressure. The reason for the strengthening of the American dollar, stock indices and commodity assets have become very encouraging negotiations between the US and China. So, the market expects new trade agreements in the near future that will stop to put pressure on the global economy.

The US dollar index closes the week with restrained growth, despite the very weak retail sales data in the US, maintaining the overall upward trend, which can be traced from the beginning of February. At the same time, a significant resistance is the level of 97.20, a break through which will indicate further growth of the American dollar.

The US dollar index H4 chart. The current price is 96.20 (10-year government bonds yield is the blue line)

Hanzenko Anton