Analysis of the past day

On Wednesday, trading on the foreign exchange market was still ambiguous and more depended on general sentiment. So, despite the rather positive statistics on the United States and the persistence of risks in the stock markets, the US dollar index dropped significantly against a basket of competitors. The reason for it was the growth of optimism regarding  Brexit negotiations. Thus, according to some sources, the agreement on the UK’s withdrawal from the EU is 80% ready, which was the reason for the growth of European currencies against the US dollar.

The stock markets went into a significant minus, despite attempts to grow at the beginning of the day (Nikkei 225 +0.08; DAX-2.00 FTSE 100 -1.10; Dow 30 -1.10). The reason for the growth of pessimism in the market continues to remain the risks of the US trade opposition and the growth of European currencies.

The US dollar index closes trading below the support of 95.50, maintaining the downward correctional trend, indicating the possibility of reducing the American dollar to the support level of 95.40-30. At the same time, the American dollar remains  oversold significantly.

The US dollar index chart. The current price is 95.40 (10-year government bonds  yield is the blue line)

Hanzenko Anton