State of the market: the market returns to the negative sentiment

Wednesday’s trading opened with a moderate growth of pessimism on the stock indices of the Asia-Pacific region, which is likely to be moved to the indices of Europe, after a very optimistic closing of trading on Tuesday, with an increase in optimism on stock exchanges and a strengthening US dollar. At the same time, the growth of pessimism is associated largely with negative data, and not with the lack of data on the US trade agreements. This calls for additional growth of uncertainty.

The RBNZ meeting results was a significant event at the start of the day  – the key interest rate was maintained unchanged at around 1%. While it was expected that it will be reduced by 25 b. p., supporting the New Zealand dollar. The rhetoric of the RBNZ turned out to be more confident than expected, despite the risks.

From the start of the day the US dollar index has been trading strengthened, limiting to Friday highs, actually slowing the upward trend in the dollar on the growth of trade uncertainty and limiting it to the resistance level 98.50-60. Support is located at 98.20-10.

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

Hanzenko Anton

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

Topical articles of the trader’s blog:

1. The U.S.-China trade agreement news
2. The trade war risks are coming back
3. Upward dynamics of gold, resumption of growth or correction before the decline

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1. Several reasons to buy Cisco Systems, Inc. shares in October. Let’s earn Together!