Analysis of the American Trading Session

Following Friday’s informative trades, the US dollar index was closed at the opening of the day level, updating the daily high on optimistic employment data in the US. The driver for the rapid correction of the dollar was the speech of US Federal Reserve Chairman Powell, which turned out to be quite dovish because of restraint about the possibility of tightening monetary policy. Also it is noteworthy  the pressure of the Trump administration on the Fed government, which also promoted soft rhetoric.

At the close of trading on Friday, the dollar index broke the upward trend of recent days. Thus, fixing the index below the level of 96.20-00 indicates a downward dynamic, which will be limited to the lows of the current year.

The US dollar index chart. The current price is 96.00 (10-year government bonds  yield is the blue line)

Read also: “Emerging markets and their prospects: South African rand (ZAR)”

Andre Green

Earn with the help of the trade service on the news Erste News!

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