Analysis of the past day

The safe haven assets received significant a support on Tuesday, following the results of the day.  It was due to the strengthening of the negative dynamics of stock indices and weak data on business activity in the US manufacturing sector. The worsening sentiment in the US also strengthened the correction sentiment in the US dollar, supporting most major world currencies.

Stock indices throughout the day were in the red zone, which was caused by rising trading risks. (Nikkei 225 +0.02; DAX -0.30; FTSE 100 -0.30; Dow 30 -1.20)

The US dollar index was traded in different directions at the end of the day, updating the high near the level of 99.40, but lost all previously earned points on weak statistics on business activity in the US manufacturing sector. This increased the likelihood of thr US rate cuts on signs of a weak economy. It is also worth noting the significant overbought dollar, which has been traced since Friday, which put additional pressure on the American dollar. Support levels are located at levels: 99.00 and 98.80, resistance: 99.20 and 99.40.

Fig. The US dollar index chart. Current price – 99.00 (10-year US government bonds yield – blue line)

Hanzenko Anton