The main market’s drivers
The growth of optimism in the market and the strengthening of stock indices have increased the pressure on the US currency, which has been trading lower from the start of the day, after the yesterday’s growth. In addition to optimism, the pressure on the American currency is from the US state bonds, which also increase profitability by reducing overall risks.
Technically, a decrease in the US dollar index is impulsive, with no significant grounds. Also worth noting is a significant oversold of the US dollar, which is limited to support levels: 96.00 and 95.80.
The US dollar index chart. The current price is 96.10 (10-year government bonds yield is the blue line)
Read also: “Government bonds – the mechanism of trade and the correlation with the currency market”
Andre Green
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