State of the market: the dollar is correcting against Friday

Trades on Monday opened with a correction of the US dollar across the market after a dollar’s decline on Friday. The reason for the sale of the American dollar was the speech of US Federal Reserve Chairman Powell, who, despite the confirmation of the Fed’s intention to raise rates in September, significantly lowered the hawkish tone and voiced some doubts, which became the driver for the sale of the dollar on Friday. Also, do not forget the recent criticism of Trump, against which the easing of the Fed’s policy will be seen as a political interference in the work of the Fed and the growth of political risks in the US.

The US dollar index since the start of the day is trading in the correction phase, limited to resistance levels: 95.20 and 95.40. It should be noted that the further growth of the dollar is also limited by the growth of optimism in the market and the downward dynamics of the state. of US bonds. Support levels: 95.00 and 94.80.

Read also: “Emerging markets and their prospects: Chinese yuan (CNH or CNY)”

Hanzenko Anton

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