State of the market : major currencies are traded in different directions

The dollar index on Wednesday is trading quite restrained against the basket of major competitors, after having retreated from the lows of two weeks. It should be noted that the American dollar continues to rise against the commodity currencies and directly the Australian region, which was caused by the publication of weak data on business activity in New Zealand and a decrease in the cost of metals.

On the other hand, the American dollar, like most currencies, weakened against the yen amid the continuing risks associated with the trade confrontation of the United States. Also, the driver for increasing interest in the yen was the decline in the Chinese yuan due to the actions of the People’s Bank of China. European currencies remain neutral to the dollar so far, which is likely to change with the opening of trading on European stock exchanges.

The US dollar index from the beginning of the day overcame a significant resistance of 94.60, but was limited to the level of 94.80. At the same time, it maintains an upward trend, bargaining in the correction phase in an expanding formation.

Read also: “Emerging markets and their prospects: South African Rand (ZAR)”

Hanzenko Anton