Analysis of the past week

The last week of August turned out to be highly multidirectional both in terms of the dynamics of major currencies and news. The main reason for uncertainty in the market was a sharp aggravation of the US trade opposition against China and against Canada. As a result, in a positive plus, the week is closed only by safe harbor currencies: the yen and the franc.

Also, as a result of the week, the British pound received significant support for the possibility of a softer Brexit process than previously expected. The reason for the pound’s ubiquitous growth was the comments of the EU minister, who said that Britain can count on privileges, since it is a very significant partner for the EU.

The dollar index for the week closes in flat, receiving support from the worsening of the trade confrontation against China and Canada.

Technically, a week lateral trend on the dollar index indicates a slowdown in downward dynamics and in the future may indicate a reversal with a return to the general uptrend, in the path of which there remains a significant psychology of 95.00.

The US dollar index H4 chart. The current price is 94.90 (10-year government bonds yield is a blue line)

Hanzenko Anton