Analysis of the past day

On Wednesday, February 28, the US dollar renewed its February high against its main competitors, which was caused by the persistence of optimistic sentiment in the US economy after the speech of the US Federal Reserve Chairman. In turn, the general strengthening of the American caused the flight of investors from risks, which was especially acute at the beginning of the day on strengthening the yen.

European stock indices began the first half of the day with a decrease in flight from risks following the negative closing of Asian trading sites (Nikkei 225 -1.44, DAX +0.10, FTSE 100 +0.00, Dow 30 +0.40). With the positive opening of trading in the American session, stock markets returned optimism, exactly as in the second half of the day, under pressure were the US state bonds.

For all the different directions of stock exchanges and state bonds, the US currency continues to strengthen against its main competitors, which is caused by the expectation of tomorrow’s speech by US Federal Reserve Chairman Powell, who also expects very optimistic rhetoric. On the other hand, if Powell can not please dollar investors, the US currency may be under pressure of correction.

Graph of the US dollar index. The current price is 90.60.

Hanzenko Anton