Analysis of the American Trading Session

The American session on Monday turned out to be very restrained and carried a corrective character, like Monday as a whole. Following Monday’s results, the American dollar was kept in check against the main competitors, which was caused not least by the aggravation of the US trade confrontation.

Trump’s statements regarding the new duties on Chinese goods and China’s response caused an escalation of fears in the market, which first of all put pressure on the stock indices and commodity currencies of the Asia-Pacific region.

So, Tuesday’s trading opened with an accelerated decline in the stock indices of the Asian region, which triggered the flight of investors from risks. These sentiments provided appreciable support to the yen, the franc and gold, confirming the growing negative sentiment.

The US dollar index also appeared under pressure at the beginning of the day due to a decrease in the yield of 10-year state. bonds. But negative sentiment also affects other world currencies, slowing down the US dollar. In this case, further collapse of the stock indices, of course, will negatively affect the American dollar.

Andre Green