State of the market: optimism leaves investors
With the opening of trading on Thursday in the Asia-Pacific trading exchanges, an increase in pessimism can be traced. It led to the investors’ flight from risky assets and the strengthening of safe haven currencies. Several factors led to pessimism: weak statistics on business activity in the manufacturing sector in China, lack of results from the US-North Korea summit, and fading optimism about the US-China trade negotiations. As a result, it supported the so-called safe assets: the Japanese yen, the Swiss franc and gold.
From the start of the day, the US dollar index has been trading very restrained, staying above key support at 96.00, maintaining the downtrend and limited to resistance at 96.20-30. The growth of pessimism can be a driver for the strengthening of the dollar, but only in the face of growing optimism in the American economy.
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Hanzenko Anton
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