State of the market: the dollar is correcting against Friday

The general tension around the US trade confrontation declined on the evidence that the US and Mexico are ready to review the NAFTA trade agreement. On the other hand, Canada’s participation and role in these negotiations has not yet been confirmed, which can cause some difficulties.

Movement under NAFTA agreement of caused an increase in optimism in the market and contributed to a decrease in the US dollar, which was mainly the reason for the sale of an American dollar yesterday.

Stock indexes of the Asian-Pacific region are traded mostly positively. Concerns are caused by the indices of China, which may become a signal to the correction of the dollar at the reduction of European stock exchanges.

The US dollar index is traded near the lower boundary of the four-month uplink, limited to support levels: 94.80 and 94.60. Also worth noting is the different direction of the dynamics of the dollar and the US state bonds, that can cause a movement for the American dollar.

Read also: “Emerging markets and their prospects: South African Rand (ZAR)”

Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

Topical articles of the trader’s blog:

1. Trade balance influence on the country’s economy
2. Stock indices : Asia-Pacific region
3. Collapse of the Turkish lira. A threat to the market!

 Current Investment ideas:

1. Preparing to have profits on an optimistic report of Alcoa Inc.!
2. On weak reporting of Boeing shares we can get a strong income!