Analysis of the past week

As a result of the outgoing week, volatility returned to the market, that wasn’t persist until August 13. The reason for the growth of the US dollar and exit from the multi-day side channel was a reduction in risk. Namely, trade concessions from the United States and the continuation of the US – China trade talks. As a result, safe haven assets were under the pressure, which had previously been strengthened on risks .

Amid lower risks, support was given to commodity currencies, in particular, the British pound, which moved to growth on easing the risks of the tough Brexit. The euro also came under the pressure, which was due to the expectation of stimulus in the eurozone.

The US dollar index for the week showed an increase of about 1.00%. This is a very significant indicator after the movement of the US dollar index in a weekly flat. This growth of the American dollar meets the upward correction after the decline in early August, where significant resistance levels are located at 98.30 and 98.50.

Fig. The US Dollar Index Chart H4. Current price – 98.30 (10-year government bonds yield – blue line)

Hanzenko Anton