The main market’s drivers

Despite the limited pre-holiday trading, the market found a reason to resume selling the dollar against Friday’s growth. The reason for the resumption of risks for the American dollar became data on the US government shutdown, which became the driver for the growth of pessimism. Safe haven assets continued to receive support against the background of the resumption of investors’ flight from risk. At the same time, commodity currencies are trading near local low.

The growth of pessimism was mainly traced in the US currency, but the euro was also under pressure, which indicates general negative sentiment. The US dollar index returned to the downward trend of recent weeks. A consolidation of the dollar below 96.50 indicates the possibility of updating the lows at support levels: 96.20 and 96.00.

The US dollar index chart. The current price is 96.40 (10-year government bonds yield is the blue line)

Read also: “Correction on the Elliott Wave Theory”

Andre Green

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