State of the market: the American is recovering

On Tuesday, the US dollar is traded near a weekly maximum based on correction after the decline. The growth of optimism in the US currency was caused by the growth of the profitability of the US state bonds which are traded near four-year highs. Also, the US currency was supported by the expectation of a meeting of the US Federal Reserve, which forced investors to reduce the number of short positions on the American before the publication of the Fed’s protocol.

At the beginning of the day, the Japanese yen appreciably strengthened against most competitors based on the publication of mixed data on employment and retail sales in Japan. The main growth of the Japanese currency fell on the European and Pacific currencies. At the same time, the decline of the American against the yen remains subdued. The main growth of the yen is caused by the continued optimism in the Japanese economy, which is growing.

The US dollar index, with the reduction of short positions, is traded with corrections, indicating a further possibility of growth. What is also indicated by the technical picture, namely the formation of the figure “double bottom”. But it is also worth noting that the market’s attention shifts to the publication of the US Federal Reserve Protocol. As a result, the slowdown of the movement relative to the US currency is possible.

Graph of the US dollar index. The current price is 89.30.

Hanzenko Anton