Analysis of the past week - Ester Holdings
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Analysis of the past week

The outgoing week turned out to be very intense and volatile and, not least, thanks to the personnel reshuffles in the White House, which caused the growth of political risks in the US. In addition to political instability, pressure on the American currency was exerted by the resumption of the Trump connection with the Russian Federation. As a result, attitude toward American dollar have only worsened.

With all the negative factors, the US dollar managed to close the week against the main competitors, thereby updating the maximum of the last two weeks. The reason for the growth of the US dollar in recent days was the closing of short positions on the American in anticipation of the March FED meeting, which will be held next week. At the same time, the main driver of the strengthening of the American dollar was the increase in the profitability of the US government bonds, which, in turn, received support from technical factors.

Index of the US dollar despite the slowdown of the downward trend, doesn’t hurry to work out the figure of the “double bottom”, which was formed on the US dollar index since the beginning of March. The above-mentioned fundamental factors remain the reason limiting this movement. At the same time, fixing the index above the level of 90.30-50 will indicate the possibility of further growth. Fundamental to this movement may be a very optimistic protocol of the US Federal Reserve.

US dollar index Graph D1. The current price is 90.30.

Hanzenko Anton

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