The main market drivers

Closer to the end of trading in Europe, the weakening of the American dollar across the market slowed down. The main reason for the weakening of the American dollar remained optimistic market expectations regarding the US trade negotiations, which were reinforced by tweets of the US President D. Trump. Also, pressure on the dollar was exerted by the increasing likelihood of a rate cuts at the next US Federal Reserve meeting.

As a result, the US dollar index fell to the support level of 98.20. A further decline in the American dollar is limited by its oversold and declining activity at the end of the week. A surge in volatility is possible at the publication of the results of trade negotiations. Support are marks: 98.20 and 98.00, resistance: 98.50 and 98.80.

Fig. US dollar index chart. Current price – 98.40 (10-year US government bonds yield – blue line)

Read also: “Escalation of the US – China trade war
USA and China and what does this mean for the market? ”

Andre Green

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

Topical articles of the trader’s blog:

1. Cloudy prospects for the  oil market 
2. Risks of global economic slowdown are escalating
3. What indicators choose Forex traders (Part 2)

Current Investment ideas:

1. One more opportunity to earn in October! Sell ​​#CAT shares now!
2. Several reasons to buy Cisco Systems, Inc. shares in October. Let’s earn Together!
3. Technology giant Microsoft is getting ready to storm new highs! Let’s make money on it!