State of the market: the US and China return to the negotiating table

At the G20 summit, the US leaders in China agreed to resume trade talks, thus delaying the introduction of $ 300 billion in new duties on Chinese goods. The position of the US government regarding the Chinese technology giant Huawei was also weakened. This was a positive signal for economic sentiment at the start of the week and contributed to the growth of optimism about trade negotiations.

Against the background of reducing the risks of a trade war, the US dollar index at the beginning of the day accelerated growth against a basket of competitors. He updated the high at 96.50. Further strengthening of the American dollar may be limited by its overbought and trading channel. But a further increase in optimism is likely to increase demand for the American dollar. Support levels: 96.40 and 96.30, resistances: 96.60 and 96.70.

Read also: “What is expected from the June Federal Reserve meeting”

Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

Topical articles of the trader’s blog:

1. G20 Summit – what to expect and to beware of
2. Prospects for the USD/JPY for early July
3. Oil market and its cloudy prospects

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