Outlook for the week: the market adjusts positions by the end of the month

After the very positive trading on Friday, the stock exchanges show a continuation of optimistic sentiment, helped by the Friday’s decline in the profitability of the US government bonds. As a result, the world stock exchanges show a continuation of the upward dynamics, while the February highs on the stock indices remain as a significant resistance, from which in the future it is possible to repel and resume decline.

In terms of news, the end of the month is full of statistics and significant speeches (the Economic Calendar). In addition to the publication of the report on employment in the US and the series of statements by representatives of the world’s Central Banks, it is worth noting the speeches of the US Federal Reserve Chairman Powell, who will speak for the first time as Fed Chairman on Tuesday and Thursday. At the same time, a more hawkish tone is expected from this nominee.

The US dollar index, after unsuccessful attempts to update the monthly maximum, returned to the established range, which in the end may indicate a decline in the index with the update of the lows. In this case, the main trading range remains in force. Support levels: 89.00 and 88.50, resistance: 90.00 and 90.50.

Graph of the US dollar index. The current price is 89.50.

Hanzenko Anton