Analysis of the American Trading Session
The US session on Wednesday closed with a collapse of the US dollar across the market. The reason for this was the soft rhetoric of the US Federal Reserve, which postponed the planned rate increase. As a result, two hikes will probably not take place this year. The market expects at least two increases in the middle of the year, but this is not yet justified. The Fed clearly succumbed to pressure from Trump and backed off. Therefore, we should not exclude the possibility of a complete end of rate hikes in the United States.
On Wednesday, the US dollar index updated a low at the level of 95.30, which broke through significant support and opened the way to support levels: 95.00 and 94.80. Significant resistance settled at 95.30 and 95.50 levels.
The US dollar index chart. The current price is 95.20 (10-year government bonds yield is the blue line)
Read also: “Chicago Boards Options Exchange (abbr. CBOE)”
Andre Green
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