State of the Market: investors keep an eye on the safe assets

After very restrained and pessimistic trading in the European session, American sites maintained a negative attitude and opened with a decrease, thereby increasing pressure on the US currency, which remained under pressure throughout the day. Very optimistic data on the US trade balance provided a little support for the American, but not enough to resume the upward dynamics of the dollar.

The main driver of the market for today are the stock exchanges, which retain uncertainty on the market. Therefore, investors are beginning to buy up assets of a safe haven, which is especially evident in pairs with the Japanese yen. Gold is also in demand, but it is limited to a narrow trading channel.

Also, the reason for flight from risks is the expectation of tomorrow’s report on employment in the US and the correction of positions in the dollar before this event. Therefore, with the further subsidence of the US stock indices, one should expect an increase in pressure on the dollar. The US dollar index keeps the ascending channel, remaining under pressure of correction.

• Support levels: 92.20 and 92.00.
• Resistance levels: 92.80 and 93.00.

Graph of the US dollar index. The current price is 92.50 (the blue line is the yield of 10-year US government bonds)

Hanzenko Anton