State of the Market: investors awaiting a new stage of the US trade confrontation

Trades on Thursday opened with the resumption of pessimistic sentiment in the market, which was caused by data on the possibility of resuming the US trade confrontation. This time, Trump’s administration undertook to review the import of cars to the US, thereby giving new breath to the trade war, which had previously been suspended.

As a result, the stock indices of the Asia-Pacific region started the day lower, despite the modest growth of the Wall Street index. Commodity assets are traded in different directions remaining in uncertainty after data on the growth of oil reserves in the US, which increased the pressure on oil.

The US dollar, against the background of resumption of trade confrontation, remains under restrained pressure against the basket of major competitors and under considerable pressure against the yen. An additional factor in the weakening of the American was the very low-key tone of the Fed’s protocol, which said that the Fed would not rush to raise rates even if the target inflation rate reached 2%, but another rate increase is expected in June.

The dollar index, despite the pessimistic sentiment, managed to update the high of the year at around 94.20, thereby confirming the uptrend. On the other hand, the American remains under the pressure of a new round of trade confrontation. Support levels: 93.80 and 93.60.

Also, read: “Fundamental analysis: The labor market and its impact on the dynamics of the national currency“

Hanzenko Anton