State of the market: the dollar has returned to decline

With the opening of trading on Wednesday, the US dollar resumed its decline against a basket of major competitors. Earlier, on Tuesday, the American dollar showed restrained upward dynamics, which was limited to Trump’s statements and market uncertainty in the European session. As a result, the US dollar index has updated a high at 97.10. At the Asia-Pacific session, the American dollar lost all points earned.

Also at the start of the day the data on the consumer price index (CPI) in New Zealand came out, which disappointed the market, collapsing the New Zealand currency. But the growth of optimism in the market and the high demand for commodity currencies very quickly restored most of the lost points of the New Zealander against the US dollar.

The US dollar index continues to decline against a basket of major competitors from the start of the day, limited to levels: 96.90 and 96.80. The driver for the weakening of the American dollar are technical factors and partly political uncertainty in the United States. The return of the dollar index under the level of 97.00, will indicate the potential for decline. Resistance levels: 97.00 and 97.20, support: 96.80 and 96.70.

Read also: “Martingale and the application of its strategy on cross-rates”

Hanzenko Anton

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