The main market’s drivers

The US dollar remains under the pressure after a decline throughout the day, which was reinforced by the growth of China’s trade balance. Amid rising optimism and weakness in the US dollar, commodity currencies, including the British pound, received a support. The main strengthening of raw materials is traced against the background of the Australian dollar, which received support from data on China.

After very optimistic data on export and import prices in the United States, the weakening of the American dollar slowed down, which was also caused by oversold of the US dollar against a basket of competitors.

• Export Price Index (m/m) (Mar), 0.7%, forecast 0.2%.
• Import Price Index (m/m) (Mar), fact 0.6%, forecast 0.4%.

The US dollar index, after a decline, found support at the level of 96.80, thus appearing to be significantly oversold. Zone 96.80-90 is a reversal, from which we can expect both a continuation of the decline in the increasing pressure on the dollar and the formation of a correction, which is facilitated by optimistic statistics for the United States. Resistance levels are located at the levels: 97.00 and 97.20, support: 96.80 and 96.60.

Fig. The US dollar index chart. The current price is 96.80 (10-year government bonds  yield is the blue line)

Read also: “The trade war and its prospects”

Andre Green

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

Topical articles of the trader’s blog:

1. Oil market: results and forecasts
2. World reserve currencies and their popularity
3. Stock indices and their impact on the Forex market

Current Investment ideas:

1. Johnson & Johnson shares are growing again! Connect to an investment idea now!
2. CAT shares give SUPER-opportunity to earn in April!
3. Citigroup Inc. shows good potential for the growth. And on this we can earn! Get connected!