State of the market: the US-China trade talks deadlocked

After it became known that trade agreements between the United States and China were broken, and the United States introduced 25% duties on Chinese goods, the market took an expectant stance on China’s response and waiting for further development of trade opposition. As a result, Asian and Pacific stock indexes opened the week with a significant decline, reflecting an increase in pessimism in the market. The foreign exchange market remains very restrained, despite the exacerbation of risks, showing a small dynamics of investors’ flight from risks.

From the start of the week, the US dollar index has been trading near the upper limit of the downward channel, thus indicating a potential for a decline, but also limited to uncertainty on the growth of risks. This may help slow the decline of the American  dollar and the formation of a reversal. Support levels: 97.20 and 97.00, resistances: 97.40 and 97.60.

Read also: “How long will the upward rally of the American continue based
on the growth of the US state bonds profitability?”

Hanzenko Anton

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