State of the market: the American is recovering on reducing the risk of a trade war

On Friday, the US dollar is traded slightly higher than the opening of the day after the rapid growth yesterday, which was caused by a decline in the euro on the comments of the head of the ECB. Also, the rise in the US dollar was caused by Trump’s signing of a proclamation regarding the tax on steel and aluminum, which exempts Canada and Mexico from the tax with the prospect of reviewing the agreement on NAFTA. In fact, the danger of a full-scale US trade war persists, and this law gives the Trump administration a wider space for action, allowing it to regulate quotas for imported steel and aluminum from different countries.

As a result, an ambiguous situation has developed in the market with a decline in demand for safe assets and European currencies and the strengthening of commodity currencies. But, in the general picture, it’s like a correction before another wave of American decline, as the actual protectionism in the US continues to strengthen the positions.

Graph of the US dollar index. The current price is 90.10.

Hanzenko Anton