State of the market: dollar returns to decline

After the Fed raised rates and signaled about two rate increases in 2019 instead of three, the US dollar strengthened sharply across the the market. The growth of the US dollar was not long and continued only during the American trading session. At the trading session in Asia, the dollar came under the pressure of correction and returned to the downward dynamics of recent days, and the US currency shows a moderate growth only against commodity currencies, which remain under pressure from negative sentiment.

The reason for the decline in the US dollar can be called a number of reasons, including the some actions of the US Federal Reserve before Trump’s criticism, lowering inflation in the United States and lowering forecasts for a further increase in rates in the future. As a result, the US dollar index returned to significant support of 96.70, which indicates attempts to resume the downtrend in the US dollar, but only after the low at 96.60-50 was updated. At the same time, it is worth noting a significant oversold of the dollar, which may cause a correction to resistance levels of 97.00.

Hanzenko Anton

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