The dollar fell due to the China’s statement

The US currency weakened throughout the spectrum of the market due to the comments of Chinese officials on the possibility of stopping the purchase of the US state bonds, which caused the sale of the US dollar and the transition to the most probable alternative – the euro.

There is a positive dynamics of the US state bonds and other countries, but at the same time the American weakens across the whole spectrum of the market. In turn, cross EUR/CHF also appeared under pressure, which may indicate the ambiguity of the market relative to the single currency and a greater propensity to safe haven assets.

It is also worth noting that this is assumption, and not an official statement, which has no final decision. Therefore, a rapid correction is possible, especially regarding a single currency.

Graph of the US dollar index. The current price is 91.80.

Hanzenko Anton