Analysis of the past day

On Friday, August 17, the US dollar continued to decline across the market spectrum on the possibility of easing geopolitical risks, which may cause US and China negotiations regarding the settlement of trade conflicts. At the same time, support was given to risky assets, which weakened against the US dollar at the beginning of the week. Also, the pressure on the dollar had a technical correction before the weekend.

Stock exchanges throughout the day were traded in different directions, remaining under pressure of risks and market indecision (Nikkei 225 +0.35, DAX -0.70, FTSE 100-0.50, Dow 30 -0.10). The reason for the reversal of sentiment on the European stock exchanges was the restrained inflation  data in the eurozone, which may indicate a lack of drivers for the growth of these assets.

The US dollar index closes the day by a significant decrease, limited to the level of support at 96.20-30, which is caused by the correction of the positions before the weekend, which may result in results of the US and China negotiations regarding the trade confrontation.

The US dollar index chart. The current price is 96.30 (10-year government bonds yield is a blue line)

Hanzenko Anton