The main market drivers

The comments by ECB President M. Draghi during the press conference turned out to be less dovish after the euro declined across the market based on the results of the ECB meeting. Despite the fact that they did not deny the possibility of further stimulating the eurozone economy. Draghi also noted the possibility of economic recession and the need for flexibility of the ECB.

But the main driver for the restoration of the euro was the statement by the US President D. Trump, in which he once again criticized the Fed and interest rates in the United States, thereby accusing the ECB of depreciating the euro against the US dollar. As a result, the dollar declined across  the market, and the euro restored losses on lower deposit rates.

The US dollar index, after updating the weekly high at 99.00, returned to the opening level of the week, having lost all positions earned during the weekly trading. The further weakening of the American dollar is limited to its oversold and flat from 98.50 to 98.20, which was traced at the beginning of the week.

Fig. US dollar index chart. Current price – 98.30 (yield on 10-year US government bonds – blue line)

Read also: “Escalation of the US-China Trade War
and what does this mean for the market? ”

Andre Green

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

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