Risk reduction increases pressure on the US dollar

With the positive opening of the European stock exchanges, the pressure on the US dollar and safe haven currencies (CHF and JPY) increased, which was caused by a general return of investors to more risky and profitable assets. Against the backdrop of rising optimism, the American remains more exposed to sales due to correction of positions after mixed data on US GDP and expectations for employment in the US, which will come out tomorrow.

As a result, the commodity and stock markets show a growth in optimism and complete disregard for the aggravation of US-China trade relations. An exception is oil, which is waiting for data on oil reserves in the US. In conditions of maintaining the existing sentiments, these dynamics will remain, but with an eye to today’s data on the euro area and the US.

Fig. EUR/USD. Current price – 1.1710

Also, read: “Martingale and applying his strategy on cross-courses”

Hanzenko Anton