The main market’s drivers
Maintaining a restrained negative sentiment on the stock markets and the growing geopolitical risks continued to support the US currency. The main strengthening of the US dollar can be traced against European currencies, which remain under the pressure from the negative dynamics of European stock indices. Also worth noting is a significant oversold of European currencies and an overbought of the American dollar. This indicates the possibility of an early correction of the dollar. In addition, the negative opening of trading on Wall Street will limit the growth of the dollar.
The US dollar index has overcome the resistance level of 98.20 and is preparing to test a significant resistance of 98.40-50. Mark 98.50 acts as a strong resistance, from which one can expect repulse, especially against the background of Friday data on US GDP. An additional factor to the correction of the dollar is the growth of the US state bonds profitability, which in recent days maintain an inverse correlation with the American dollar.
Fig. The US dollar index chart. Current price – 98.30 (10-year government bonds yield – blue line)
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Andre Green
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- Multifactorial analysis of the Forex market
- Expectations from the USD/JPY for the end of April – early May
- U.S. and E.U. Trade War
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