State of the market: agiotage around the British pound is declining

After the rapid growth of the British pound across the spectrum of the market on the evidence that the EU has agreed a transition period for the UK as part of the Brexit negotiations, the euro has received support on the rumors that ECB members are talking about the need to curtail the QE program. As a result, the US dollar index was sharply adjusted against Friday, thereby allowing to completely unload the overbought indicators before the US Federal Reserve meeting on Wednesday.

Due to the lack of factual data on the completion of the Brexit negotiations and the results of curtailing the QE program in the eurozone, one should expect a restrained correction after a swift move. Since these news are rumored, and most issues on Brexit remain unresolved, a restrained recovery of the American dollar is expected, awaiting optimistic data from the Fed.

US dollar index Graph. The current price is 90.00.

Hanzenko Anton