State of the market: dollar slowed down, while pound remains optimistic

From the start of trading on Wednesday the market has maintained a very ambiguous dynamics. Asia-Pacific stock indices are traded mostly below zero on keeping risks and the collapse in oil prices, which is caused by the pressure of the US President on OPEC, which previously stated the possibility of reducing oil in the future. Against this background, trading on Wall Street closed with a moderate decline, while the Asian markets remained under pressure.

Earlier, the British pound received significant support on the message that the UK and the EU agreed on a preliminary text of the Brexit agreement, which was the driver to strengthen the pound at the end of the previous day. Despite very optimistic expectations, there is still a lot of uncertainty, including the discussion of this text by the UK government, which will take place today.

The US currency is trading at the opening day level, remaining under pressure from the correction after growth, returning to the psychological level of 97.00. With the correction maintained, we can expect a test of support levels: 96.80 and 96.50, but with further growth of pessimism in the market and a slump in stock indices, a resistance test of 97.20 and 97.50 is possible.

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Hanzenko Anton

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