Analysis of the past day

Tuesday, January 9, was very volatile and marked by the strengthening of the US currency across the entire spectrum of the market, which was caused by the continued optimism about the rate increase in the US.

The positive dynamics of the stock markets (Nikkei 225 +0.57, DAX +0.10, FTSE 100 +0.36, Dow 30 +0.30) persists on the market, which was caused by the continued optimism regarding the growth of the world economy and the existing trend . The growth of stock indices had a positive impact on commodity assets, which received support from the positive dynamics of oil. Oil continued trading near the three-year highs due to the expectation of further decline in crude oil reserves in the US.

Against the backdrop of widespread strengthening of the American and a restrained correction of commodity currencies, the Japanese yen received support at the beginning of the day based on data that the Bank of Japan reduced the cut redemption of government bonds in Japan. As a result of this expectation regarding the curtailment of the incentive program in Japan has significantly increased.

The US currency continued to strengthen across the entire spectrum of the market, receiving support from optimism on tightening monetary policy of the United States. So, the US dollar index returned to the level of closure last year. Further strengthening of the US dollar was limited by significant overbought and weak data on the number of open vacancies in the US. As a result, it is necessary to expect the formation of a correction from the level of 92.40-30.

Graph of the US dollar index. The current price is 92.20.

Hanzenko Anton