The Euro strengthened at the end of the week

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Dollar ends the week mainly on a minor note, although the overall weakening pressure are also present. This week the USD index lost over 1% despite the yield growth that has helped him is that in tandem with the yen the yield on 2-year treasuries reached a 10-year high.
The flight of traders out of the dollar is primarily due to the revaluation of the risks of trade conflict between the US and China after the latter imposed a more lenient response to 10% instead of 25% of the total fees of the Americans.
In addition, Beijing has promised not to use the yuan as a weapon in the trade war, which also reassured investors. In this context, there is another factor of pressure on the dollar, concerns about the impact of the trade confrontation for the economy of the United States.
In addition, there is positioning of players before the fed’s meeting next week. Market participants in any case reduce the risks, not knowing what tone to expect from the regulator because there is a risk that the Central Bank will Express concern about the impact of trade on the vicissitudes of the future path of policy tightening.
EURUSD, which is now tried on the strength level of 1.18, theoretically, can now aim for the 1.20 level. Now the pair turned into a moderate correction, partly due to profit-taking after an aggressive rally. However, the mood remains bullish the Euro, and at the moment, to reverse it can only confident the fed’s policy in addition to headline negative news from Italy.
Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS