Focus of the Asian market: the American is under pressure

During the Asian-Pacific session, the US dollar weakened across the entire spectrum of the market. This was caused by the growth of uncertainty regarding the state economy. The publication of Trump’s tax reform (which had to be published yesterday) remains the main uncertainty factor.

It also became known that today a new head of the US Federal Reserve will be announced. According to the WSJ version, it will be Jerome H. Powell https://www.wsj.com/articles/trump-to-tap-feds-jerome-powell-for-fed-chairman-1509568166. Powell’s candidacy for the presidency of the Fed is not very beneficial to the market, since Powell’s policy is less sloping to tighten the policy amid the candidates such as Warsh and Taylor.

As a result of uncertainty, the US currency remains under significant pressure, which affects the positions of the US dollar and the negative dynamics of stock indices.

The dynamics of the US dollar against the basket of world currencies remains above the support 94.40. Previously, the index worked out the shape of the inverted head and shoulders figure, which indicated a reversal of the annual downtrend. It is necessary to hold above the key support 94.00 for further development of the upward dynamics of the index.

Hanzenko Anton