State of the Market: the market monitors stock indices

Trades on the Asian-Pacific stock exchanges opened with a noticeable increase at the beginning of the week, which was caused by the continued positive dynamics on Wall Street and the general strengthening of world stock indices, which is also facilitated by a restrained positive dynamics in raw material prices.

The market analyzes Friday’s report on employment in the US, which was very mixed. Despite the fact that the number of jobs in the US has slowed growth, expectations about the increase in rates have not changed significantly. As a result, the American currency shows a restrained strengthening against the main competitors.

At the Asian session, trading volumes are limited due to a weekend in Japan. The growth of activity is to be expected with the opening of the European session, which can cause a movement against Friday. The US currency is recovering mainly at the expense of European currencies and safe haven currencies. At the same time, commodity currencies remain very restrained and are traded within the limits of Friday.

The US dollar index, after data on employment, has appreciably strengthened due to the maintainance of the optimism based on the growth of interest rates in the US. As a result, the index chart has formed some bottom, which indicates a slowdown in the downtrend. Also, a “double bottom” figure is formed on the dollar index, which in the future may indicate a reversal of the downtrend. Resistance levels: 91.90 and 92.00, support: 91.60 and 91.50.

Graph of the US dollar index. The current price is 91.80.

Hanzenko Anton