State of the market: the US dollar is under pressure

From the start of trading on Thursday, the US dollar index has been trading downward, maintaining a negative trend after yesterday’s collapse. The reason for the sale of the US dollar was the comments of the US Federal Reserve Chairman Powell, who said that interest rates were slightly below the neutral level, which was the reason for the sale of the US dollar across the market. At the same time, the US Federal Reserve Chairman kept the market’s expectations about the next rate increase  in December or January.

As a result, the US dollar index in trading on Thursday is trading near the lows of the week, near the level of 96.70, indicating the loss of all points earned since the beginning of the trading week. It is also worth noting that the uptrend in the US remains as long as the dollar index is above the support of 96.50. The resumption of growth in the dollar should be expected after breaking through the resistances 96.80 and 97.00.  An increase in pessimism in the stock markets, which causes a decline in China’s stock indices can serve as the reason for the strengthening of the American dollar.

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Hanzenko Anton

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

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