State of the market: the dollar is growing on reducing risks

With the opening of trading on Friday, the US currency continued to strengthen across the market, maintaining optimism after yesterday’s data on the US GDP. In addition to the general increase in demand for the dollar, optimism on the market is also supporting the American dollar. The growth of positive sentiment contributes to reducing the value of safe haven assets in favor of the American dollar. The main driver for the strengthening of the dollar, in addition to data on the US GDP, was data on the resumption of tension in trade relations between the United States and China, which could end without a significant result after lengthy negotiations.

From the start of the day, the US dollar index has been trading near a significant resistance of 96.30, which is a turning point in the formation of a reversal. Further growth of an American dollar is likely to be limited by its overbought. Fixing the index above the level of 96.00-10 will indicate the formation of a correction after the decline.

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Hanzenko Anton

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