The main market’s drivers
Despite the restraint of Monday’s trading, thanks to the empty economic calendar, negative sentiment persists in the market due to the continued tension around the US-China trade standoff. Against the background of negative sentiment and the increasing decline in European stock indices, classical safe currencies have resumed their growth: the Japanese yen and the Swiss franc. Gold is trading in a flat, maintaining a downward trend.
The US Dollar Index is traded negatively on correction and risk, yielding to the euro the role of an alternative safe-currency currency. The main factors behind the growth of the euro against the dollar are the technical correction against Friday and the continuing risks for Brexit, which in fact has the euro through the cross EUR/GBP. At the same time, the risks of aggravating the US trade confrontation with the sale of US government bonds held by China put pressure on the US dollar.
From the start of the day, the US dollar index has remained in the low-key correction phase against Friday, having actually fought off the 98.00 psychological resistance and continued to trade in the ascending channel, limited to the support levels: 97.90 and 97.80. Significant resistance settled at levels: 98.00 and 98.20.
Fig. The US dollar index chart. The current price is 97.90 (10-year government bonds yield is the blue line)
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Andre Green
Earn with the help of the trade service on the news Erste News!
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