State of the market : American dollar is in anticipation of US employment data

Trades on Friday opened with a restrained rise of the US dollar against the basket of major competitors. The growth of the American dollar is caused by the correction after yesterday’s decline on the worsening of the trade confrontation between the US and China. So, from today, new US tariffs on Chinese goods amounting to $ 34 billion come into effect. The Chinese government has promised to respond with similar measures. At the same time, US President D. Trump said that in the future round of confrontation, duties of $ 500 billion will be applied.

In fact, the market almost didn’t react to this statement, showing a moderate dynamics of the US dollar, and the stock markets of the Asia-Pacific region are traded above zero. The reason for the restraint of the market remains the expectation of employment data  in the US, which will come out today. Therefore, investors prefer to hold a waiting position before the announcement of the employment report in the US.

The US dollar index continues to be limited to support levels: 94.40, 94.20 and 94.00. resistance is located at the levels: 94.60-70 and 95.00.

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Hanzenko Anton