Analysis of the past day

The statement by Atlanta’s Federal Reserve Bank head Bostic unexpectedly worried restrained trading on Wednesday. He ruined market expectations for the possibility of further interest rates hike in the United States. As a result, a modest decline in the market on optimism around the US-China negotiations turned into a sale of the American dollar.

From the start of the day, stock indices have traded in a noticeable plus while waiting for a trade agreement between the US and China, the details of which will be released on Thursday (Nikkei 225 +1.10 DAX +0.80; FTSE 100 +0.80; Dow 30 +0.30 ).

The dollar index, after the statement by the Fed representative, updated the year’s low at 95.20, retaining the entire boundaries of the downward trading channel of recent days, which indicated the possibility of correction to resistance levels: 95.50 and 95.70. Downward dynamic remains in force, limited to oversold of the dollar.

The US dollar index chart. The current price is 95.40 (10-year government bonds yield is the blue line)

Hanzenko Anton