The main market’s drivers

The US currency moves to a correction after updating the two-month high against the basket of competitors at the level of 95.70, actually unloading the overbought dollar and correcting positions before the upcoming speech of US Federal Reserve Chairman Powell. On the other hand, the downward correction of the US dollar remains limited by negative sentiment caused by the decline in European stock indices and the persistence of risks of growth in the Italian budget deficit, which puts significant pressure on the single currency.

Under the conditions of correction, the US dollar index remains in an uptrend and is limited to support levels: 95.50 and 95.30, from which it is worth expecting a break with further growth. Speech by the head of the US Federal Reserve can provide both support for the dollar and strengthen the correction.

The US dollar index chart. The current price is 95.50 (10-year government bonds yield is the blue line)

Read also: “Cross rates characteristics”

Andre Green

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