State of the market: the US dollar maintains an upward dynamics
Trading on Thursday opened with a restrained growth of the US dollar against a basket of competitors. The FOMC protocol, published yesterday at the end of the day, was the reason for strengthening the American dollar. The text of the protocol supported the American dollar, despite the reduction in rates, which was aimed at reducing risks. The Fed has not looked for ways to further stimulate the US economy. Against this background, the American dollar received support, but returned pessimistic sentiment to the market. The market will also expect new statements on the US economy at the Jackson Hole Symposium.
From the start of the day, the US dollar index has been trading strengthened, having beaten off support 98.20-10. At the same time, negative sentiment increased on the market, putting the pressure on risky assets and increasing demand for safe haven assets. The American is expected to have restrained dynamics in the side channel despite the attempts of growth. A limiting factor for the dollar are the upcoming statements and resistance levels: 98.50-40.
Read also: “Expectations from the AUD/USD pair for May”
Hanzenko Anton
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