Analysis of the past day

On Friday, trading in the foreign exchange market closed the week with a strengthening of the US dollar and the British pound. The British pound was supported by data on the possibility of postponing Brexit due to the lack of unity in the UK government. The American currency received support on the technical correction of short positions on the American dollar and growing pessimism on the stock markets.

Stock exchanges close the week mostly with a decrease in the growth of pessimism around political risks in the United States and uncertainty around the US – China trade relations, which have returned to the category of intense after very lengthy negotiations. (Nikkei 225 + 0.97 DAX -0.40; FTSE 100 -0.40; Dow 30 -0.60).

The US dollar closes Friday’s trading in positive territory, but all week in the red, showing a rapid correction on the rebound from the level of 95.20, which is caused by the rapid decline in the US state profitability and lower stock indices. It should be noted that the return of the American dollar above the level of 95.50 indicates an attempt of correction against the decline from the start of the year.

The US dollar index chart. The current price is 95.60 (10-year government bonds yield is the blue line)

Hanzenko Anton