State of the market: American declines based on comments Mnuchin

On Thursday, the US dollar declines across the entire spectrum of the market based on the comments of the US Treasury Secretary Steven Mnuchin that a weak national currency is beneficial for the development of the US market economy. Such a statement was regarded by the market as a signal to change the US monetary policy. In addition, the pressure on the dollar is provided by the growing confrontation between the US and China.

The euro also continues to receive support from the overall decline in the US dollar, but is limited to correction of positions before the publication of the ECB protocol. Today’s publication of the minutes of the ECB meeting is a significant economic event. The dynamics of the European currency will depend on it. This can cause correction of positions on the euro before the publication of the ECB protocol.

The US dollar index remains near the updated three-year lows, limited to support levels: 88.50-40 and 88.00. At the same time pointing to a global downtrend on the American, but limited to oversold and easing pressure on the publication of data on the eurozone. Resistance is located at the levels: 89.50 and 90.00.

Graph of the US dollar index. Current price – 88.90

Hanzenko Anton