Analysis of the past week

The first week of September, despite the statistics on business activity, remained very eventful, where a significant place was occupied by unexpected statements, which had a major impact on the market. A striking example of this was the statements regarding the negotiations on Brexit. So, by the end of the week, moods for the pound have changed dramatically from pessimistic to optimistic. This was due to a change in key requirements both from Germany and the UK, allowing to significantly improve the political climate in Europe and reduce the possible risks of Brexit.

The main event of the week was the publication of an employment data in the US (NFP), which, despite the ambiguity, had a noticeable support for the US dollar against the basket of major competitors. As a result, the US dollar index returned to the general uptrend and opened the way to resistance levels: 95.50 and 95.70, which in the future may serve as a reason for a  resumption of the uptrend.

The US dollar index H4 chart. The current price is 95.30 (10-year government bonds yield is a blue line)

Hanzenko Anton