State of the market: markets return to negative sentiment

Trades opened with negative dynamics of stock indices in the Asia-Pacific region and resumption of pessimism in the market at the start of the week. After Friday, the US dollar  received support from optimistic data on US employment for August, the US dollar index accelerated growth against the basket of major competitors.

Also, the US dollar continues to be supported by trade risks, that were aggravated against the backdrop of Friday’s comments by US President D. Trump, he threatened the introduction of duties for another $ 267 billion, this is plus to the previously discussed $ 200 billion of Chinese imports. In fact, he imposed duties on all Chinese goods. Despite the “loudness” of the statement, the market reacted to this event with great restraint, but the fears on the market increased noticeably.

Also at the start of the day optimistic data on Japan’s GDP and inflation in China came out. Particularly noteworthy Chinese statistics, which slowed down the decline in stock indices in the Asia-Pacific region.

The US dollar index traded with a strengthening against the basket of competitors on positive data on employment and exacerbating the risks of trade confrontation. The dollar index is limited by the resistance level of 95.50 and overbought, which in the end can cause a restrained correction and a second support test of 95.30. The more significant resistance is the level of 95.70-80.

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Hanzenko Anton

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