The main market drivers

Trades on Tuesday remain an optimistic due to the reduction of tension in the US – China trade talks despite the decline in stock indices. As a result, some uncertainty remains in the market, which is expressed by the multidirectional dynamics of commodity currencies and the negative dynamics of stock indices. Other world currencies continue to trade in different directions near the opening of the day level, indicating restraint and limited market.

The US dollar index also remains restrained, but has updated the high of the day and recent weeks at 97.90. This can be regarded as confirmation of the upward trend in the American dollar, which continues to be limited to overbought and the expectation of  rates cut in the United States. As a result, it forms a side channel from 97.90-98.00 to 97.70-60, which is associated with upcoming risks.

Fig. US dollar index chart. Current price – 97.80 (on 10-year US government bonds yield – blue line)

Read also: “The British pound is growing on Johnson’s failures”

Andre Green

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

Topical articles of the trader’s blog:

1. An uncertainty about Brexit is increasing
2. Aggravation of the US – eurozone trade tension 
3. USD/CNY – an indicator of the progress of the US – China trade relations 

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