State of the market: the dollar remains under the pressure
After the publication of the US Fed meeting results where interest rates were saved and forecasts lowered for economic growth, the US dollar weakened across the market. In addition to the very soft tone of the Fed, an additional pressure on the American dollar had data that the Fed is not going to raise rates this year. And the next possible hike can be likely in 2020.
As a result, the US dollar fell sharply across the market, which persists in trading on Thursday. Also it is worth noting the strengthening of the Japanese yen, which is associated more with a day off in Japan than with flight from risk.
The US dollar index is trading below the psychological support of 96.00, indicating that the downtrend persists, but it is limited to oversold after yesterday’s collapse. Resistance levels: 96.00 and 96.20, support: 95.80 and 95.60-50.
Read also: “The Central Bank of Canada – the prospects for monetary policy”
Hanzenko Anton
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