Analysis of the past week

Last week, in addition to the planned news, was very full of unexpected statements, such as the revision of the trade agreement between the US and Canada and comments by representatives of China on the US bonds. As a result, the US currency accelerated decline across the entire spectrum of the market.

Also, this week was the week of renewal of annual highs. Thus, oil prices have updated the highs of the last three years on optimism caused by compliance with the OPEC agreement, and on data on the reduction of oil reserves in the US. Major stock indices also continued to grow, and such indices as DOW 30 and FTSE 100 updated historical highs. In the renewal of the highs, the general decline in the American currency played a significant role.

The working week the US currency began very optimistically, as indicated by the update of last week’s highs. But China’s above-mentioned unexpected statement and a series of data on the US and the publication of the ECB protocol, which had a more impulsive impact on the market than the actual one, broke the American’s upward momentum and lowered it to a minimum of the last year.

The main weakening of the American fell on European currencies: the euro and the pound, which is caused by fundamental factors. Such a significant decrease in the US dollar index in the future may indicate the possibility of further decline of the American and, as a result, indicate the resumption of the general downward trend for the American, which can be traced from the beginning of 2017.

Graph of the US dollar index. The current price is 91.00.

Hanzenko Anton