State of the Market: the dollar retreated from the lows

Trades on Friday opened with the resumption of a decline in the US currency across the entire spectrum of the market after the rapid growth at the end of Thursday. The rapid growth of the American at the end of the day was caused by the comments of the US President D. Trump, that he wants to eventually see the dollar strong, putting in doubt the comments of Mnuchin who holded a speech earlier and caused the sale of the American.

Despite the fact that the American has receded from the global lows, the market has not completely switched from dollar sales. Investors still have some doubts about the growth of the American after a rapid descending rally. At the same time, the market expects the speech of the US President D. Trump, which will be held later in Davos today, and his comments on the US currency.

Also, at the beginning of the day, weak inflation data were published in Japan, which, amid the correction of the American and the growth of stock indices, increased pressure on safe haven assets and in particular the Japanese yen. The stock exchanges of the Asia-Pacific region are traded above zero, which may eventually lead to a positive start of the European stock exchanges.

The US dollar index after a swift correction outlined some trading range from 88.50-20 to 89.20-50, which probably will remain until the speech of the US President D. Trump takes place.

Graph of the US dollar index. The current price is 88.80.

Hanzenko Anton