State of the market: the American continues to grow

After the publication of the optimistic FOMC protocol for January in the market there is a noticeable increase in optimism about the American. The strengthening of the US dollar is caused by the hawk tone of the protocol, which implies three increases of rates in the US in 2018. The FOMC report shows optimism about the growth of the US economy and the world in general. Also, the market does not discard the fourth increase in rates this year.

With a very noticeable increase in optimism about the American, negative sentiments remain in the market, which are expressed by the flight of investors from risks. So, from the beginning of the day the Japanese yen has appreciably strengthened on the negative closing of the Wall Street indices and the mixed dynamics of Asian stock exchanges.

Thanks to the wave of optimism about the US currency, the US dollar index managed to overcome the psychological mark of 90.00, which in turn opens the way to resistance levels of 90.40 and 90.50. This limits the development of the figure “double bottom” on the D1 timeframe.

Graph of the US dollar index. The current price is 90.20.

Hanzenko Anton