State of the market: pessimism is growing in the market
With the opening of trading on Tuesday, there has been a sharp increase in interest in safe assets, including gold, yen and the franc. Also, the euro received support against the dollar. The main driver for strengthening of a safe haven assets was the increase in risks. Thus, tensions in the Middle East increase after Iran called the latest US sanctions as the reason for the breakdown of diplomatic negotiations in the United States. An additional factor to the growth of pessimism was the call of the Chinese think tank for a tougher position in trade negotiations with the United States. This was the reason for the growth of pessimism, especially in anticipation of the meeting of the leaders of China and the United States at the G20 summit.
Against the background of rising pessimistic sentiment, the US dollar index updated a low, breaking through the support level of 96.00 and aimed at the level of 95.80. Thus, it pointed to the preservation of the downward trend, which slowed down a bit.
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Hanzenko Anton
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