State of the market: the dollar accelerated the decline on Trump’s comments

The US dollar is trading lower against its main competitors, which was triggered by Trump’s comments on a strong dollar. Yesterday at the end of the day, US President D. Trump said that China and Europe are manipulating their national currencies. And added that he doesn’t like the Fed policy of rates raising. Thus, Trump was not in favor of the head of the Federal Reserve Powell.

As a result, the dollar accelerated the decline across the market on the growth of protectionism in the US and the possibility of growing political instability in the United States. Earlier, US President Trump already expressed dissatisfaction with the policy of the Fed, which caused a wave of negativity in the direction of Trump. Since the US presidents never interfered directly in the work of the Fed. As a result, this was the second encroachment on the independence of the Federal Reserve from political games, which is negatively perceived by the ruling elite of the United States.

The US dollar index after a rapid decline is trading near the support level of 95.50, keeping the potential for a decline in anticipation of the results of negotiations on China and the US trade agreement and growing dissatisfaction within the United States. The second significant support is the level of 95.30-20.

Read also: “Stock indices: the Japanese market”

Hanzenko Anton

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

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