State of the market: the American dollar remains under the pressure

At Wednesday’s trading, the US dollar remains downward against a basket of competitors. The main decline of the American dollar can be traced against European currencies and safe haven currencies. If the decline in the US dollar against the euro and the pound is due to the expectation of the publication of a draft version of the Brexit deal, then the growth of safe currencies is associated with the risks that have arisen around the US-China trade confrontation agreement. Thus, the US intervention in the situation with the riots in Hong Kong caused a significant increase in discontent from the Chinese government. Thus, fears of a breakdown in trade talks between these countries have intensified.

The US dollar index accelerated the decline from the start of the day, limiting to support at 98.20, indicating a potential for decline, but limiting to oversold and support levels: 98.20 and 98.00. Geopolitics and a possible slowdown in the global economy associated with existing risks remain to be the main factor in the weakening of the American dollar. Resistance will be the marks 98.40-50 and 98.70.

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Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

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