The state of the European session

Trades in Europe have been very effective for the US currency, which has significantly strengthened against the main basket of world currencies. But especially the strengthening of the American is traced against commodity currencies due to the weakening of raw material prices. The strengthening of the American is mainly caused by expectations for employment growth and the promotion of a tax bill in the US, which is also supported by the data published today on the number of initial applications for unemployment benefits.

Given the noticeable growth of the American in the European session, closer to the end of the day, one should expect a decrease in activity on the dollar due to a decrease in the yield of the US state bonds and correction of positions before tomorrow. Regarding the US dollar index, a moderate correction is expected. The resistance levels are: 93.800 and 94.100, support is located at the levels: 93.400 and 93.200-100.

Graph of the US dollar index. Current price – 93.600

Hanzenko Anton