State of the market: investors are waiting for drivers to move

Trades on Friday opened with restrained dynamics in the currency and stock markets, due to weak signals from Wall Street and the preservation of risks on the trade confrontation of the United States. Also, investors continue to assess data on business activity in the US, which declined significantly in June and put pressure on the American dollar.

The British pound on the contrary is trading with strengthening after positive signals from the Bank of England, which pointed to the possibility of tightening interest rates in the UK. According to the results of the June meeting of the Bank of England, the votes for raising and maintaining interest rates were distributed as follows: 3-6, which gives grounds for expecting an increase in rates in the UK at the forthcoming meetings of the Central Bank. In turn, the increase in rates in the UK may spur other world’s Central Banks to reconsider their soft monetary policy.

The US dollar index against the background of the optimism’s growth decreased to the level of the opening of the week at the level of 94.80, which indicates the correction of the American dollar, but maintains an upward trend, which is limited by the support levels: 94.60 and 94.40.

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Hanzenko Anton