Analysis of the American trading session

During the American session on Thursday, March 22, 2018 , the US dollar maintained a strong position against most of the major market currencies. In general, this dynamics of the US dollar was associated with profit taking on short positions of the US currency after a decline across the spectrum of the market the day before. Additional support for the US currency was provided by data on business activity in the US, which remain above 50, indicating prosperity in the main sectors of the US economy. For more details, see “The US Dollar Remains Positive”.

The British pound declined against the US dollar in the course of the US trading, which was due to the general strengthening of the US currency, as well as the results of the March meeting of the Bank of England. As expected, the Bank of England kept the discount rate at 0.50%, while 2 votes of the committee were given for its growth, which provided temporary support to the pound. Pressure on the pound was caused by the comments that Brexit is still a source of uncertainty, which reduces the chances of raising the interest rate in May.

Alexander Sivtsov