State of the market: the market evaluates the US Federal Reserve meeting results and expects an employment report

At Thursday’s trades, the US Federal Reserve meeting results on monetary policy remains the main driver of trading. At the same time, the market actually ignored significant data for China and Japan.

Despite the fact that the expectations for rates cut in the United States were confirmed, the Fed’s accompanying speech was not so clear. This caused an increase in significant volatility in the US dollar.

The US dollar remains under the pressure, after the US Federal Reserve Chairman Powell press conference. This is caused by less harsh rhetoric than before. Despite the very positive dynamics of the US economy, the Fed is not so confident in the policy of raising rates. This caused market expectations for further stimulation of the US economy.

The US dollar index has remained under pressure from the start of the day, limited to oversold and support at 97.30. A further decline in the American dollar is very likely, but will be limited to oversold and attempts at correction. Significant support is located at the levels: 97.30-20 and 97.00, resistance: 97.50 and 97.70.

Read also: “The risks of a trade war are back”

Hanzenko Anton

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