The State of the Market: the threat of a trade war broke out with renewed vigor

When it appeared that the possibility of the US trade war had diminished on the evidence that Trump was willing to exchange duties on steel and aluminum imports in the United States on the revised terms of the NAFTA agreement, it became known that Gary Kon was resigning. Gary Cohn was Trump’s economic adviser with extensive experience in the global economy. And the departure of this figure from the Trump administration may indicate a significant increase in protectionism on the part of Trump.

As a result, in the market with new strength, fears that manifested themselves in the flight of investors from risks and sales of the American currency broke out. In its turn, the US dollar index is  traded restrainedly at the level of opening of the day, keeping the potential to decrease, but also limited to the downward dynamics of commodity assets and currencies.

Graph of the US dollar index. The current price is 89.50.

Hanzenko Anton