State of the market: the American maintains positive dynamics

Trades on Wednesday continue to maintain the dynamics of strengthening of the US currency against the background of the correction of positions. So, after the renewal of the multi-year low, the US dollar continues to trade in the recovery phase, while limiting itself to the existing downward trend.

An additional factor in maintainance of optimism for the American remains the negative closing of America’s stock markets, which indicates the continued fears over the stock exchanges. World stock indices, after attempts at growth at the beginning of the month, have not been able to fully recover, indicating that fears remain and further downgrade.

Despite the optimism of the American, the US dollar index, against the basket of world currencies, remains limited to downtrend, the upper limit of which runs in the range 89.80-90.00. From this range, one should expect a resumption of a decline or retreat. Otherwise, fixing the index above the psychology of 90.00 may indicate a slowdown in the global downtrend of the American.

Graph of the US dollar index. The current price is 89.80.

Hanzenko Anton