The main market’s drivers
The US currency resumed growth against a basket of major competitors after a weakening at the start of the day. The reason for the growth of the US dollar was the renewed risks in Europe. So, at the European session, it became known that the Italian government will continue to promote the existing budget without revising the waste, which has resumed the risks in the eurozone and the decline of the euro. The pound was also under pressure due to the deterioration of sentiment towards the government, which could serve as a reason for the resignation of British Prime Minister T. May. Against the background of risks in Europe and the growth of the US dollar, trading on Wall Street opened with a decline, which also caused a decline in European stock indices.
As a result, the US dollar index returned to the highs of last week, limiting itself to 96.00 resistance, which confirmed keeping the upward dynamics and opened the way to resistance levels of 96.30-40, the support is the marks: 95.80 and 95.60.
The US dollar index chart. The current price is 95.90 (10-year government bonds yield is the blue line)
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Andre Green
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- The US economy continues its growth, confirming the rates hike policy.
- Prospects for recovery of emerging markets.
- Trump presidency results (1/2).
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