After decline at the beginning of the year, the US dollar index found support near the area of 97 basis points. And although were the attempts to break below, this level has survived, and having formed accumulation which technically speaks about the stabilization of the index and possibility of its recovery in the long term.
The weakening of the US currency was caused by several factors. Inside the country, economic indicators slowed in the first quarter, and Donald Trump’s reforms are moving much slower than expected, and the scandals around the US president have unnerved the markets. External factors were the reduction of political risks in the Eurozone and hopes of Teresa May in the parliamentary elections, which significantly strengthened the British currency.
And now positive of the euro was worked by the markets, and the elections in the UK failed miserably. In the States, the political situation has stabilized and no one remembers about the impeachment.
Only past statistics remains, but the Federal Reserve continues to raise interest rates, and the heads of federal banks are talking about improving the situation in the future. One word is not enough for the resumption of the growth of the US dollar, but if forecasts of the Fed begin to come true, greenback will quickly gain momentum.