State of the market: the dollar is under pressure

After a very soft rhetoric of the US Federal Reserve, in which hints to a further increase in rates in the United States disappeared, the US currency weakened across the market. The decrease in expectations of the Central Bank of the USA is motivated by the weakening of the economic and financial factors that have noticeably deteriorated recently. As a result, the US currency remains under pressure on trading on Thursday.

Against the background of the overall sale of US currency and very positive statistics on business activity (PMI) in China, support was given to stock indices in the Asia-Pacific region. The growth of optimism in the stock markets will also give a positive impetus to European markets. In addition,  weakness of the American dollar had a positive impact on commodity assets.

The US dollar index in trading on Thursday remains under pressure, despite oversoldness. After a rapid decline yesterday, the US dollar index confirmed a downward trend, which is limited to support levels: 95.20 and 95.00, resistance: 95.30 and 95.50.

Read also: “Martingale Forex Strategy”

Hanzenko Anton

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

Topical articles of the trader’s blog:

1. The World Forum: Davos 2019. Globalization is under threat!
2. Long-term investment in currency pairs! The USD/DKK pair!
3. Another “Top 5” books on trading. It can’t be too much information!

Current Investment ideas:

1. Intel Microprocessors for Macro Earnings at the Stock Exchange! Connect!
2. Fabulous profit at Walt Disney shares in January!