Analysis of the past day

On Tuesday, the US currency continued to decline against a basket of major competitors, and in particular against European currencies. The reason for the weakening of the US dollar was the reducing the probability of the Fed interest rates hike at the December meeting because of the criticism of the US Federal Reserve from US President D. Trump. As a result, rumors appeared on the market that Trump could dismiss Fed Chairman Powell.

Stock exchanges throughout the day were traded in different directions. Thus, the global stock markets from the start of the day traced a slow growth of optimism, which caused a positive opening of trading on Wall Street (Nikkei 225 -10.77; DAX -0.00; FTSE 100 -0.80; Dow 30 +0.90 ).

The US dollar index for the day updated a low at around 96.70 and moved to a correction on positive construction data in the US, while significantly slowing the uptrend and indicating the formation of a downward dynamic. At the same time, the movement on the American dollar remains limited waiting for the US Federal Reserve meeting results. Thus, the resistance is located at the levels: 97.00 and 97.20.

The US dollar index chart. Current price – 97.20 (10-year government bonds yield – blue line)

Hanzenko Anton