Analysis of the American session
The American session on Wednesday closed with a mixed movement of the US dollar against major competitors due to the US Federal Reserve meeting results. Despite the key rate cut by the US Federal Reserve by 25 b.p., the US dollar index strengthened against a basket of competitors and updated the high at 98.00. This was due to the Fed statement in which there was a hint of refusal to further reduce rates. After that, the market focused on soft rhetoric and accelerated the sale of the American dollar.
As a result, the US dollar index broke the upward trend and started to decline, opening the way to support levels: 97.20 and 97.00, while limiting itself to significant oversold.
Fig. US dollar index chart. Current price – 97.30 (10-year US government bonds yield – blue line)
Read also: “Expectations from the July Fed meeting”
Andre Green
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