Analysis of the past day

On Monday, most of the currency pairs traced a very high volatility, which was caused by Trump’s statement about the introduction of new duties on Chinese goods. The main movement was traced against the US dollar, commodity currencies and the Chinese yuan, due to the increased risks of resuming a trade war.

Stock indices were traded far below zero throughout the day, putting pressure on commodity assets. The reason for this increase in pessimism was the possibility of exacerbation of trade risks (Nikkei 225 —; DAX -1.30; FTSE 100 +0.40; Dow 30 -0.90).

The US dollar index during the trading on Monday showed a move against Friday. The main driver for the correction was the exacerbation of the US – China trade tension. The US dollar index retreated from the lows, but remains uncertain, limited to resistance: 97.80 and 98.00. Significant support is located at 97.30 and 97.00.

Fig. The US dollar index chart. The current price is 97.60 (theon 10-year government bonds yield is the blue line)

Hanzenko Anton