The dollar is growing and stock markets are scared of politics
On Wednesday, the stock markets dominated by the flight from risk, but it’s not helping defensive assets such as gold, the yen and franc carry the loss on the dollar strengthening, which moves under the influence of the adjustment of the positions of traders before the end of the month and the quarter.
The European currency also inferior to the American counterpart. Euro maintains bearish bias after failing to break through to the level of 1.25. The pair continues to test the level of 1.24. In part the us dollar was supported by positive comments of trump, who announced that the meeting of leaders of Japan and North Korea was held on a positive note. The President also added that Kim Jong-UN looks forward to a dialogue with trump.
The more active the rise of the USD is in tandem with the yen on Monday, approaching an important intermediate resistance near 106.00, where the 14 – and 20-day moving average. If the pair has enough momentum to test this area in the short term, the technical picture a bit. However, in General, to talk about the prerequisites for a more meaningful bullish breakout, it is not necessary.
Total investor attention remains focused on trade relations USA and China and the further development of events around the theme of tariffs. Markets are sensitive to this issue and react to any signals of the parties. If trump will show aggression towards China, the rise of the dollar may continue.
Analyst social network for investors
eToro in Russia and the CIS