The main market’s drivers
Trading in the European trading session are closing very restrained. During the day, the main currency pairs maintained moderate volatility, trading near the opening of the day level. The only exception was the British pound, which weakened across the market. The reason for the decline of the British pound were evidence that the Brexit talks between the British government and opposition were stalled. At the same time, British Prime Minister T. May said that negotiations with the Labor Party will continue.
The overall restraint of the market is due to the expectation of new data on the US-China trade negotiations. So, the president of the USA D. Trump tweeted that the vice-premier of China comes to the USA to conclude a trade deal. At the same time, he added that he really likes the fact that the US treasury is filled for more than 100 billion dollars a year due to tariffs.
Such a statement was perceived by the market very restrained, since there are no details of trade agreements and their deadlines for implementation. On the other hand, Trump’s highly belligerent tone can support the US dollar in heightening risk.
The US dollar index is trading in a flat from 97.70 to 97.40. Support levels are: 97.40 and 97.20, resistances: 97.70 and 97.90.
Fig. The US dollar index chart. The current price is 97.50 (10-year government bonds yield is the blue line)
Read also: “The EU and the UK are making compromises on Brexit”
Andre Green
Earn with the help of the trade service on the news Erste News!
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