The main market’s drivers

In the context of a restrained strengthening of the US dollar on the growth of pessimism, the US dollar accelerated growth on the publication of very positive data on business activity (PMI) and the reduction of short positions on the American dollar.

The business activity index (PMI) in Chicago (USA) unexpectedly rose in November, closely approaching the highs of the year, breaking the downward dynamics of recent months.

Fig. 1. Chicago (USA) business activity index (PMI) chart

Also, the American dollar was supported by the growth of negative sentiment on the stock markets, which was caused by a correction of positions and a flight from risk. The US dollar index broke a significant resistance of 97.00, which confirmed keeping the uptrend and opened the way to the marks: 97.20 and 97.40-50.

Fig. 2. The US dollar index chart. The current price is 97.10 (10-year government bonds yield is the blue line)

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Andre Green

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

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