Analysis of the past day

On Monday, January 29, the US dollar appreciably strengthened against the main basket of world currencies, which was caused by the preservation of corrective sentiments for the US currency. But, in spite of this, the American’s upward dynamics remains rather low-key due to the lack of significant drivers for strengthening and preserving the indicators for the US economy. To a greater extent, the American’s rising dynamics is caused by the corrective movement after the decline.

In turn, the stock indices on Monday remained below zero due to the expectation of corporate reporting (Nikkei 225 -0.05, DAX -0.20, FTSE 100 +0.05, Dow 30 -0.40).

Despite the noticeable strengthening of the US dollar and its deviation from the three-year lows, investors remain very restrained in buying US currency, which is due to the persistence of political risks in the US and a technical picture. This is also indicated by the preservation of the general downward trend in the US dollar index.

Graph of the US dollar index. The current price is 89.30.

Hanzenko Anton