Analysis of the past day

On Monday, February 5, the US currency continued to grow across the entire spectrum of the market, updating Friday’s high against the main basket of world currencies. The optimism about the American was caused by the positive statistics on business activity in the non-manufacturing sector of the US and the very high probability of raising rates in the US. An additional factor of the Americans’ restrained growth was the mixed statistics on the euro area and the expectation of the ECB head’s speech.

Stock markets, like the commodity market, were under pressure throughout the day, which was caused by the negative start of stock exchanges (Nikkei 225 -2.55, DAX-0.50, FTSE 100 -1.20, Dow 30 -0.10 ). The downward dynamics of the stock indices is mainly due to the preservation of the overall corrective movement after a prolonged growth and the renewal of historical highs.

The US dollar index on maintaining optimism after Friday’s employment data in the US remains in the sideways trend, limited to the range of the previous week. This lateral movement of the American indicates a slowdown in the overall downtrend. But the unwillingness of the American to break through an existing flat points to its weakness.

Graph of the US dollar index. Current price – 89.40

Hanzenko Anton