The dollar proves a mindset for growth

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Stocks ended the day Tuesday, and Wednesday morning there is a noticeable weakening of the Asian sites within 0.2%. It is worth noting that the American players managed to overcome the initial decline and briskly to complete the auction. Mainly the positive associated with the relatively strong reports from Apple, which is considered a confident signal of consumer demand.
Bloomberg noted that the strong accountability and the weakening of the shares reduced P/E 18.5 to 16.2, and now the shares do not seem expensive by historical standards, as it looked in the beginning of the year, avoiding a protracted sales.
From the technical analysis once again the us indices bounce on approaching the 200-day average. Save above this level is a reflection of the belief in the positive prospects of the shares, despite weakening since the beginning of February.
The dollar proves a mindset for growth
The us dollar has made a last decisive break of its 200-day average in the DXY index. The index rose 0.7% on Tuesday, closing in the plus 9 of the last 11 trading sessions and adding in that time 3.5%. It is equally important that the key technical resistance had taken decisive movement, reflecting the confidence of the players in the future prospects of the U.S. currency to strengthen. On the other hand, momentum indicators indicate that the current rally may soon end as the dollar is overbought at the moment.
Theoretically the upcoming event this week (fed meeting, and employment data in the US) are the most significant for the markets and have the potential to stop the dollar rally. However, much higher chance that the FOMC will try to maintain a restrained tone of the comment, hinting at the increase in June, but avoiding commitments to future plans.
EURUSD fell below 1.20
The EURUSD is trading Wednesday morning near 1.20 and below its 200-day average. A violent reaction to the fed is able to put the final point in the dispute of bulls and bears in support of the pair at important levels, or finally causing the surrender of the supporters of the Euro.
Oil and the ruble fell victim to the strengthening of the dollar.
The dollar’s rise yesterday caused a sell-off in commodity markets, dropping oil on the 2.5 dollars from a peak of Monday in the area of $73.10 per barrel of Brent. On the Moscow stock exchange trading ruble was conducted, and on international markets the Russian currency continued to lose after oil and the General strengthening of the dollar. USDRUB rose to may 1, 63.30, while EURRUB continued to mark time at 76.
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Alexander Kuptsikevich,
Analyst
FxPro