State of the market: market is waiting for the Fed meeting
From the start of the day, the US dollar has been trading with the strengthening, after it became known that China is ready to return to the negotiating table regarding the trade confrontation. This news caused a rapid increase in optimism both on the stock exchanges and on the American dollar. Later on the market appeared information that the Trump administration plans to offer China a 25% tariff for $ 200 billion, after 10%, established earlier. The actual reaction to this statement has not followed yet, since these duties will only strengthen the US-China confrontation.
The US dollar index is trading with strengthening at the beginning of the day, despite the expectation of the publication of the results of the US Federal Reserve meeting, which will come out today. Expectations for the Fed remain modest, but the market will expect from this meeting confirmation of two rate hikes this year.
The dollar index at the beginning of the day overcame the level of 94.60, thereby indicating a slowdown in downward movement and the formation of a turn, which is limited by resistance level of 94.80-90.
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Hanzenko Anton
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Topical articles of the trader’s blog:
- Stock indices: the UK market
- In Focus: Analysis of transactions for a EUR/USD pair during week
- Stock indices: European Union