The dollar gained a good growth potential

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In the second half of the day, the demand for defensive assets is preserved, although global investors are gradually recovering after yesterday’s meltdown on the optimistic statements of Powell. Gold and the yen is moderately stronger and the dollar continued to hang over European currencies. European stocks are moving in the growth zone, and the us futures trading in positive territory by the end of the day may lead to some easing of pressure on the Russian market where the major stock indexes losing nearly 1.5%.
The oil market is showing signs of stabilization quotes after yesterday’s aggressive sales, provoked by the return of demand for the dollar and an unexpected rise in gasoline stocks in line with the American petroleum Institute. Soon there will be an official report on energy stockpiles in the United States, which will further define the trajectory of prices. There is a danger that the release will show an increase in production. In this case Brentбудет forced to return to the zone of negative values on a new wave of concerns about excessively high activity in the shale deposits. The continuing interest in buying dollar also prevents the full recovery of the asset.
The us currency traded stable in the major pairs, digesting residual effect from yesterday’s statements of the new head of the Federal reserve, whose tone seemed markets a little more hawkish in comparison with his predecessor George. Yellen. In the March rate hike, investors now have no doubt, but the probability of four this year increases, according to market-50%. So, traders will continue to closely follow the rhetoric of the Central Bank and for the latest statistics from the United States to more beads to define your expectations that will determine the motion vector of the dollar. In this context, it is hardly necessary to count on the aggressive hints regulator, which would rather prefer a cautious approach because of the availability of both political and economic risks in the country.
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Sergey Kostenko,
Investment analyst
GLOBAL FX