Trade Analysis & Reviews: 21.11.2018 - Traders build up dollar...

21.11.2018 09:28 AM

Traders build up dollar positions, avoiding risky assets

Today, the dollar is trading in positive territory against its main competitors, increasing the profits of dollar traders last night, as investors avoid riskier assets in favor of safe currencies amid growing concerns about a slowdown in global growth and a toughening trade war between the US and China.Considering such sentiments and a total gap in the stock market, traders on the eve sought refuge in a liquid dollar, which rose from its two-week low recorded on Tuesday.Now, the currency markets are worried about the slowdown in global economic growth, so safe currencies such as the dollar and the yen can make a profit.Recall that for most of this week, the dollar was under strong pressure, as cautious comments by Federal Reserve staff and surprisingly weak US economic data suggested that the regulator could slow down its monetary policy tightening.The dollar index, which measures the value of the dollar against six major currencies, is at 96.82. Thus, the index rose 0.65% from the previous trading session.Given that the Federal Reserve is expected to raise interest rates by 25 basis points in December, analysts believe that the dollar can trade with a positive bias in the short term, despite a decline in long-term expectations for the Fed to raise key rates.

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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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