Analysis of the past day

On Tuesday, July 31, the US currency showed mixed dynamics, which contributed to statistics on the eurozone and Canada, and unexpected statements. So, throughout the day, the American dollar remained under pressure from general negative sentiments and published statistics. The reason for the reversal of the downtrend was the decision of the US and China to return to the negotiating table regarding the trade confrontation. This became the main criterion for the resumption of the US dollar growth. Additional support for the US currency was provided by data on business activity and consumer confidence in the United States.

Stock exchanges also moved to growth on the possibility of reducing the trade confrontation between the US and China (Nikkei 225 +0.04, DAX +0.15, FTSE 100 + 0.90, Dow 30 +0.40). Oil on the contrary accelerated the decline in data on the growth in supply.

At the end of the day, the US dollar index renewed the weekly low, but fended off the support level at 94.20. It is also worth noting that the further growth of the American remains a limited level of 94.60 and risks associated with the forthcoming publication of the results of the meeting of the US Federal Reserve.

The US dollar index chart. The current price is 94.50 (10-year government bonds yield is a blue line)

Hanzenko Anton