The main market’s drivers

Despite the weak data on inflation in the US, the US currency felt support at the level of 95.00 and returned above the significant support of 95.30. The reason for the recovery of the US dollar was a positive start of stock indices on the American stock exchange, which remains very insignificant after a decline of more than 1% of European indices.

The restrained dynamics of Wall Street is a hope for the recovery of the market after an almost daily collapse, which has been traced recently. In this case, the return of the US dollar index above 95.30-40 will indicate a correction and movement in a downward corrective movement. An additional factor in the recovery of the dollar is the growth of the US state bonds profitability, which ultimately can return the American dollar to a significant level of 95.50.

The US dollar index chart. The current price is 95.30 (10-year government bonds yield is the blue line)

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Andre Green

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