The main market drivers

A decline followed after attempts of the optimism and  US dollar to increase at the start of the day. The reason for the growth of pessimism in the market was the risks of a global recession as a result of the US – China trade war. With all this, the subsequent steps of the trade war are likely to become more significant for the global economy, which the market fears.

The American dollar was also under the pressure amid a decline of the US government bonds yield. This indicated that the market expects the continuation of the trade confrontation, as a result of which the US economy will slow down. The US dollar index continues to trade in the side channel from 97.3 to 97.80, limiting to flat.

Fig. US dollar index chart. Current price – 97.40 (10-year US government bonds yield – blue line)

Read also: “Medium-term prospects
for the USD for August-September”

Andre Green

Earn with the help of the trade service on the news Erste News!

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3. Trade signals results for half a year

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