State of the market. The US dollar is still in the catbird seat

The dollar in the course of trading on Thursday remains strong against the basket of currencies. The main support for the US currency is provided by the  fact that yesterday in the US Congress was reached an agreement on the parameters of the federal budget for the next 2 years. This agreement provides an increase in expenses by $ 300.00 billion, which allowed avoiding default and stopping the work of the government.

Support for the US currency is provided by yesterday’s statements by Fed officials. William Dudley in his statement yesterday said that the decline in the stock market is not so significant and does not pose a risk to the development of the economy unless it has continuation. Also Robert Kaplan and Charles Evans noted that the US economy is operating at full capacity and they support the tightening of monetary policy if inflation continues to grow.

The US dollar index in the course of today’s trading updated the maximum of February to around 90.46, and continues to maintain a positive attitude. Today, in the economic calendar will not be published significant data on the US economy, in connection with which the further dynamics of the US dollar will depend on the preservation of current sentiment and the craving for risk in the market.

Fig. Graph of the US dollar index. The current price of DXY is 90.44.

Alexander Sivtsov