State of the market: optimism returns to the market
Some restraint is maintained in the market with the opening of the trading week, which is due to the lack of significant statistics and low activity at the beginning of the week. The main driver of movement of European currencies are the results of elections to the European Parliament. Despite the fact that right-wing parties with anti-European positions were leading according to the polls, preliminary data showed a very low-key popularity of parties with radical points of view against the eurozone.
The single currency opened the week with restrained growth against safe haven currencies against the background of maintaining a balance of views aimed at preserving the eurozone. But there is no clear majority in the European Parliament, which will force politicians to form a coalition. Under these conditions, this alignment contributes to the strengthening of European currencies, but in the future it may exacerbate political risks in the eurozone.
From the start of the week, the US dollar index has been trading near the weekly lows, keeping the downward trend on the overall weakness of the American and the possibility of the euro recovering from risk reduction. Significant support for the American dollar is located at the levels: 97.50 and 97.40, resistance: 97.70 and 97.80.
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Hanzenko Anton
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