The dollar will continue to rise this week
The mood of global investors continues to improve on expectations of a resumption of trade negotiations between the US and China. At the end of the week returned to the markets the optimism that prevails, and on Monday, undermined the position of the dollar as a protective asset.
However, the pressure on the American currency with this front is limited, including for the reason that investors do not expect a quick resolution of trade disputes and significant breakthroughs in the difficult trade relations between the two countries.
Also the pressure on the dollar is limited ahead of the two key events this week – the release of minutes from the last fed meeting and the speech of the head of the us Central Bank Powell in Jackson Hoole on Wednesday and Friday respectively. Traders put on a pretty optimistic tone of the regulator in assessing the state of the economy, and we hope to hear confirmation of the intention of the Bank to continue gradual tightening of monetary policy.
In this context, the growth potential of EURUSD is still limited. Recent attempts by the Euro to regain the interest of buyers was a failure – after tendencies towards an intermediate resistance near 1.1450 Euro again under the mark of 1.14, which means that the support level 1.13 left in the game.
Due to the weakening of the flight from risk the integrity of this mark in the near future is unlikely to be broken. However, to increase the pressure for a couple will be enough any negative signal from the geopolitical front.
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