Analysis of the past day

Tuesday, March 13, was very volatile due to unexpected statements and statistics. Thus, the US dollar index sharply weakened against the basket of major competitors, which was caused by inflation data in the US, which coincided with the forecast and the resignation of Secretary of State Tillerson. At the same time, he was removed from office by the decree of Trump, which markedly increased concerns about political stability in the United States.

Also today,the Canadian dollar turned out under the pressure of fundamental factors,   which was caused by the comments of the head of the Bank of Canada.

Stock indices, in the wake of growing fears about US political stability, also found themselves under pressure from risk aversion (Nikkei 225 + 0.66, DAX -1.30, FTSE 100-0.90, Dow 30 0.00). Against the background of aggravation of political instability under pressure, there were also US government bonds, which are close to the minimum of the month.

In light of political risks, the US dollar index remains under pressure against its main competitors and is likely to retain the existing dynamics. But, in conditions of oversold, further decline in the dollar will be limited to levels: 89.60 and 89.40-30, from which correction is possible.

Graph of the US dollar index. The current price is 89.70.

Ganzenko Anton