State of the market: waiting for data from Europe provides support for the American dollar

Tuesday’s trading opened with a steady increase in the US dollar against a basket of major competitors. The main strengthening of the American dollar has fallen against European currencies, but it is also worth noting the decline of the main currencies against the American dollar on the signs of the preservation of trade war and the slowdown of the global economy.

Pressure on European currencies comes from weak expectations from published statistics. Thus, the pound is under the pressure from waiting for data on the UK and political pressure associated with the possibility of a tough Brexit. The euro is largely reduced by waiting for the ECB meeting results, which is expected to use soft rhetoric or even stimulate monetary policy in order to minimize the risks of a slowdown in the global economy and low inflation.

The US dollar index on risk retention maintains an upward trend, testing the strength of last week’s high at the level of 97.40. Significant resistance for the American dollar is located at levels: 97.50-60. The main limiting factor for the dollar is its overbought.

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Hanzenko Anton

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