State of the market: the dollar is adjusted after growth
The US currency appreciably strengthened across the market after rumors about the possibility of the US – China trade agreement. The reason for the growth of the American dollar was the general sentiment, which make the American currency a safe haven asset, in the face of continued pessimism in the market. In conditions of oversold dollar, the ascending dynamics of the American dollar was strengthened.
Since the possibility of a long-term trade agreement between the US and China is low, and the likelihood that the US Federal Reserve System will reduce interest rates remains significant, the upward trend in the US dollar will be limited. This is indicated by the correction of the dollar from the start of the day.
The US dollar index, after growth on Wednesday, opened Thursday’s trading with a downward correction. At the same time slowed down the decline, which was traced from the beginning of the month. In the longer term, this may indicate a deep correction. Significant support are the marks: 96.70 and 96.50, resistance: 97.00 and 97.20.
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