State of the market: the US dollar updates highs

Trading on Tuesday opened with the US dollar rise against a basket of competitors. The reason continues to be optimism after raising interest rates in the US and the weakness of the euro on the risks of the Italian budget deficit. In general, this maintains the demand for the US dollar, despite its overbought.

Also a restrained factor in the growth of the dollar against most competitors is the evidence that the United States, Canada and Mexico entered into a new trade agreement instead of NAFTA, which is now called the USMCA, which largely supported the Canadian dollar. On the other hand, this agreement also reduced the risks around the US currency and may be the reason for the growth of the US dollar against its main competitors, despite the risks of trade confrontation between the USA and China.

From the start of the day, the US dollar index has been trading above the support of 95.30, thus opening the way to 95.50, breaking through which will open the way to 95.70-80. In the end, it confirms keeping of the upward trend for the US dollar.

Read also: “Trade in currency baskets”

Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

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