The main market drivers
- Industrial orders (m/m) (Jan), fact 0.1%, forecast 0.3%.
Industrial production in the USA continued to slow in January, showing a very restrained dynamic.
Fig. 1. U.S. industrial orders chart
General dynamics of the market depends little on the published statistics. Thus, the growth of optimism in the stock markets has caused an increase in demand for commodity currencies and in particular the Canadian dollar. USD/CAD fell sharply on technical factors and the weakness of the dollar before the upcoming Fed meeting. The growth of optimism in the stock markets also increased the pressure on the yen, which is also sold before the publication of the Bank of Japan meeting results.
The US dollar index, despite the rapid growth in the US state bonds income remain under pressure. The American dollar maintains a downward trend on pessimism and is limited to resistance levels: 96.50 and 96.70. Support is located on the marks: 96.20 and 96.00.
Fig. 2. The US dollar index chart. The current price is 96.40 (10-year government bonds yield is the blue line)
Read also: “Advantages of the StopLoss order before the startegy “ Lock ”or“ Averaging ” for a novice trader”
Andre Green
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- Prospects for Boeing shares after the planes crash
- The US Dollar Index (DXY) as an auxiliary indicator for trading in safe haven currencies
- 3 major mistakes of traders-beginners
Current Investment ideas: