Analysis of the American session
Friday’s trading closed with multidirectional movement of the US dollar against a basket of competitors. An expectations of lower rates in the United States, which confirmed the restrained data on the United States are the reason for the weakness of the American dollar. The main deterrent for the American dollar was the expectation of a meeting of the leaders of the United States and China at the G20 summit. Trump and Xi Jinping returned to the negotiating table regarding the trade war according to the results of the summit.
As a result of the growth of optimism on the expectation of a decrease in trade tension, the US dollar index opened a new week with a rapid growth against a basket of competitors. Despite the growth of the dollar, concerns about a slowdown in the US economy persist, as well as expectations that the US Fed will continue to cut rates.
Amid easing of the monetary policy of the US Federal Reserve, the strengthening of the US dollar index remains limited by resistance levels: 96.70 and 96.90.
Fig. The US dollar index chart. The current price is 96.60 (10-year US government bonds yield is the blue line)
Read also: “U.S. trade opposition. What are the risks?”
Andre Green
Earn with the help of the trade service on the news Erste News!
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