What do we see in the foreign exchange market?
The vast majority of the past week was part of the upward movement of the dollar 🇺🇸. Even after the Fed’s speech on Friday, the markets remained relatively calm, however, after tweets by US President D. Trump, the US dollar literally fell to the August lows.
During the period of the trade war, a cheaper dollar could have tangible benefits to the US economy, which is already the strongest.
The coming week promises to bear a downward character for the dollar. The formation of a weak upward correction at local maximums is not ruled out.
Against the background of increased volatility and the weakness of the dollar, due to Trump's manipulative tweets, the European 🇪🇺 was able to recover some of the positions from the fall from 13.08.
A repeat level test is not ruled out this week; the probability of further currency growth is higher. The general mood is upward.
The Briton 🇬🇧 is trading at historical lows, from which powerful rebounds have been observed since the middle of last week.
It looks like the dollar's decline helped the pound begin the upward correction phase in the medium term.
The most important resistance will be 1.26. Technically, the correction is justified, however, fundamentally the pound is still in an unstable position.
A decision on Brexit has not yet been made, which creates certain risks and panic in the UK financial markets. The general mood is upward.