State of the Market: the US dollar weakens

At the trades in Asia, there is a multidirectional dynamics after the ambiguous closing of quotations on Wall Street. The growth of uncertainty in the stock markets is caused by the growing confrontation and a sharp decline in the cost of oil based on data on the growth of oil reserves in the United States.

At the beginning of the day, the dynamics of investors’ flight from risks persists, which is caused by the preservation of economic risks and the growth of Japan’s exports. Despite the fact that the values ​​of the Japan’s trade balance did not reach the forecasts, the actual value was significantly higher than the previous one, indicating the annual growth of Japan’s exports by 9.3%.

Due to the persistence of negative sentiment, the US currency also resumed a decline against the main basket of competitors, which was mainly due to the persistence of economic risks and the growing economic confrontation between the US and China. Against the background of the sale of the American, the euro gained noticeable support, but the dynamics of the European currency remains limited due to the upcoming ECB meeting.

The US dollar index broke through the main support level of 90.00, thereby resuming the downward trend. So, this index is trading near the level of 89.70-60, groping for support. In the face of political uncertainty in the US and tightening of the world’s economies, the US currency remains under pressure, which is also indicated by the continued downward trend in the US dollar.

Graph of the US dollar index. Current price – 89.80

Hanzenko Anton