State of the market: the dollar remains under pressure, the risks of trade confrontation increase
On Wednesday, the US dollar began the day lower against the basket of competitors, remaining under pressure of downward dynamics and investors’ craving for risky assets. At the same time, the main catalyst that puts pressure on the American dollar is stock indexes, that are trading below zero, which could give rise for reversing sentiment on the market.
Asia-Pacific stock markets began the day mainly below zero. This is especially evident on Chinese stock indices, which remain at risk of aggravation of trade confrontation.
The US dollar index is traded near the lower border of the upward channel, which can be traced from the beginning of May 2018, thereby limiting the level of support to 94.50-40. This level is a significant support, the breakthrough or detachment from which can indicate the further dynamics of the American dollar.
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Hanzenko Anton