Analysis of the past day

On Thursday, August 16, the US dollar continued to decline against the basket of major competitors. The main driver of the American dollar sale was the overall risk reduction in the market, which was caused by the news that China sent a delegation to the US, thereby indicating that it is ready to negotiate.

Stock exchanges throughout the day traded above zero, gaining support from the reduction in the tension in the US and China trade war  (Nikkei 225 +0.04, DAX + 0.50, FTSE 100 + 0.80, Dow 30 +1.40).

At the end of the day, the dollar is trading in a downtrend near the support level of 96.50-40, consolidation below which will open the way to support levels of 96.20 and 96.00. On the other hand, the growth of the US state  bonds yield can limit the decline of the American dollar.

The US dollar index chart. The current price is 96.50 (10-year government bonds yield is a blue line)

Hanzenko Anton