State of the market : American dollar remains under pressure

At the opening of new trading week, stock indices in the Asia-Pacific region are trading above zero, helped by the growth of optimism. So, earlier, expectations regarding China’s return duties on American products had a limiting effect on the market. But it is worth noting that the market reaction to the application of similar measures by China was adopted very restrained.

Such a weak reaction can be explained by the reaction of the market to the ambiguous employment report  in the US, which, in turn, pulled all the attention of investors to itself. As a result, the US currency continues to weaken across the entire spectrum of the market, limiting itself to overselling. At the same time, it should be noted that the growth of stock indices is a driver for the US dollar’s decline.

At the beginning of the day, the dollar index renewed the monthly low against the basket of major currencies and traded below the psychology of 94.00, thereby opening the way to support for 93.80 and 93.60, but limited to oversold.

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Hanzenko Anton