State of the market: the market is in anticipation of the results of the ECB meeting

After a restrained correction of the US currency the reduction of the risk of unleashing a trade war by the US, the market is moving in a sideways trend. The decrease in fears was caused by the White House’s statement that some countries may be exempt from the Trump tax on steel and aluminum. As a result, the pressure on stock exchanges declined, as did the demand for safe haven assets. However, the market does not cease to follow the US trade relations, expecting new attacks from Trump.

In turn, the focus of the market shifted to the publication of the ECB protocol and the subsequent press conference of Draghi, which will take place today. Significant statements about the monetary policy of the eurozone are not expected, but comments on the strong euro and low inflation will be perceived negatively for the single currency.

At the same time, against the backdrop of a decrease in pessimism, the US dollar index remains in the correction phase, which is also helped by the correction of positions in the euro. But the rising dynamics of the American is limited to resistance levels: 89.80 and 90.00. At the same time, breaking through the support levels: 89.40 and 89.20 will indicate a further decrease in the US dollar against the main competitors.

Graph of the US dollar index. The current price is 89.60.

Hanzenko Anton