The main market’s drivers
Before the opening of the US trading session, the US dollar was under pressure. The main decline of the US dollar was tracked against European currencies and the Japanese yen. While the gold and currencies of the Asia-Pacific region reacted restraint to the weakness of the American dollar. Against the backdrop of declining dollar the US state bonds profitability remain positive, and stock markets in Europe and America are trading well below zero.
The main logical reason for the decline of the dollar is Trump’s criticism of the US tight monetary policy, which was mentioned by the US president on Tuesday. Also, a decline in the US dollar can be attributed to the correction of positions before the publication of consumer prices data in the United States, which will be released tomorrow, expectations for which remain positive, but may be limited against the background of restraint data on producer prices in the United States.
The US dollar index continues to trade in a downtrend, adjusting after rising earlier in the month. The main support levels are located at the levels: 95.50 and 95.30.
The US dollar index chart. The current price is 95.50 (10-year government bonds yield is the blue line)
Read also: “Analysis of the currency market. Three Types”
Andre Green
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