On Monday at the opening of the US session the greenback was trading sideways.
In early American deals the US dollar index was trading near the level of 96.20 as the demand for safe-haven assets decreased. Remarkably, last week Donald Trump’s protectionist policy in relations with most trading partners created a turmoil in the market and the US dollar soared to the 14-month high.
Meanwhile, the stock market opened the New York trading session at highs. The Dow Jones Industrial Average approached the 5-month high, trading near the level of 25,700 points. The Nasdaq Composite added over 300 points while the S&P 500 came close to 2,850 points.
During the European trading session the greenback let the euro stay near the local highs. At the market closure the EUR/USD pair was trading near the level of 1.1420. However, analysts expect that the situation may change on Wednesday when the minutes of the August FOMC meeting will be published.
Investors expect that the minutes will provide positive estimates of economic conditions to justify two rate hikes this year in September and December. On Friday the annual economic symposium in Jackson Hole will take place where Jerome Powell may speak about readiness of the Federal Reserve to tighten the monetary policy in 2019 as well.
Analysts predict that political factors and traders’ expectations will shape the market sentiment in the nearest couple of days. Later in the week, the dynamics of trading assets will depend on macroeconomic events.
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Greenback trading sideways while US stock indices soar to highs (20.08.2018)