Analysis of the past day

On Monday, the formation of gaps was traced in the foreign exchange market. This was caused by an attack on oil refineries in Saudi Arabia. Against this background, risks escalated, putting pressure on stock indices and supporting safe assets.

Stock indices were traded lower during the day on rising risks around exacerbating tensions in the Middle East. (Nikkei 225 —; DAX -0.50; FTSE 100 -0.30; Dow 30 -0.10)

The US dollar index on the growth of geopolitical risks accelerated growth against a basket of major competitors. As a result, he strengthened on the rebound from the support of 98.00. The return of the US dollar index above 98.20-30 indicates the formation of a reversal. The limiting factor for the further strengthening of the American dollar is its overbought and the expectation of lower rates in the US.

Fig. US dollar index chart. Current price – 98.40 (10-year US government bonds yield – blue line)

Hanzenko Anton