Analysis of the past week

The first week of July was very full and uneven. During the week a significant amount of news came out, and in the middle of the week the activity of the market declined at the weekend in the US. In this case, the main event of the week can safely be considered employment data in the US.

An ambiguous employment report  in the US could ideally exert a much greater pressure on the American currency if the American dollar weren’t sold throughout the week, which was due to negative expectations for employment in the US and risks regarding the trade confrontation between the US and China. Risks of trade confrontation remain very significant, as markets continue to expect China’s response to new tariffs that will eventually exacerbate risks.

As a result of the week, the American dollar closes the trades near the level of 94.00, a significant psychology, which indicates the continued downward dynamics and is limited by the oversold dollar.

The US dollar index H4 chart. The current price is 94.00 (10-year government bonds yield is a blue line)

Hanzenko Anton