State of the market: the American maintains a downward trend

On Friday, the US dollar accelerated the decline, thereby updating the minimum of the last four years. The decline of the American is caused by the recovery of stock indices and the persistence of the US deficit.

At the same time, the main pressure on the US currency is provided by the part of growing stock indices, which, after the positive closing of trading on Wall Street, continue to remain optimistic. In conditions of recovery of optimism in the market, investors prefer more profitable assets, thereby increasing pressure on the American. In this case, the assets of the safe haven: the yen, the franc and gold also receive support for the weakness of the American. And the Japanese yen also receives support from the preservation of the Bank of Japan government for a second term.

The US dollar index keeps a downward trend, remaining under pressure. Renewal of the annual minimum may slow the downward dynamics a little, but the weakness of the American is still clearly expressed, which is confirmed by the Forex indicators.

Graph of the US dollar index. The current price is 88.30.

Hanzenko Anton