Analysis of the past week

According to the results of the first trading week of June, the US dollar index versus the main basket of competitors fell by more than 1.3%, forming a downward trend and updating the lows of the last three months.

The reason for such a rapid sale of the US dollar over the course of the week was an increase in the likelihood of lower rates in the United States. The reason for the sharp revision of the monetary policy of the US Federal Reserve was the heightened risks of trade opposition and weak macroeconomic indicators of the United States. An additional driver to the growth of pessimism and the expectation of lowering the Fed’s rates was the slowdown in the US labor market.

As a result, the dollar index accelerated the weekly downward trend and aimed at support levels: 96.30, 96.00 and 95.80. Also worth noting is a significant oversold of the dollar, which indicates a correction to resistance levels: 96.80 and 97.00.

Fig. The US dollar index H4 chart. The current price is 97.50 (10-year government bonds yield is the blue line)

Hanzenko Anton