State of the market: the American dollar is under the pressure at the start of the week
With the opening of the new month and working week, the US dollar remains under the pressure against a basket of major competitors. The driver to the decline of the American dollar is the correction against growth on Thursday and Friday and the growth of optimism in the market, which ultimately puts pressure on the US dollar. With the opening of the week, the Asia-Pacific stock exchanges traded with a noticeable strengthening after business activity in China’s manufacturing sector increased. Passive support is provided by optimistic expectations for the US-China trade talks. The opening of the European stock indices is expected to maintain upward dynamics.
Another failure of the Brexit vote in the UK Parliament, which took place on Friday, may slow down the growth of optimism in the UK stock exchanges.
The US dollar index at the opening of trading on Monday is trading down. The technical factor to the American dollar’s decline is the correction against growth on Thursday and Friday. In turn, this caused a slowdown in the upward trend of recent weeks. Thus, the consolidation of the US dollar index below the 97.20-30 zone indicates the possibility of a decline to the support levels: 97.00 and 96.80-70.
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Hanzenko Anton
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