State of the market : negative sentiment persists in the market
With the opening of trading on Thursday a restraint remain in the markets, aimed at strengthening against the dollar. Against the background of continuing risks, the decline of the American dollar remains limited. Thus, the growth of negative sentiment puts pressure on commodity currencies a lot. It contributes to strengthening the US dollar as a safe haven asset.
The driver to the growth of pessimism in the market is the data on the aggravation of the US-China trade talks. At the beginning of the day, the US President D. Trump announced that China had broken off trade negotiations, thereby promising to keep duties on Chinese goods. On this news stock indices in the Asia-Pacific region accelerated the decline, despite optimistic inflation data in China.
The US dollar index from the start of the day continues to be traded in a narrow flat, maintaining a weekly side channel. In fact, the index of the US dollar has been trading in the ascending triangle since Monday, limited to the bottom 97.50-40. The level of resistance, limiting growth, is the mark of 97.70. American dollar restraint is largely due to market uncertainty.
Read also: “Stock indices of America: Canada, Mexico and Brazil”
Hanzenko Anton
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