The main market’s drivers

The US currency accelerated the decline across the market after Clarida, the US Federal Reserve representative announced the possibility of a slowdown in the US inflation, thus provoking a wave of negative news about the US currency and the possibility of further tightening the Fed’s monetary policy. He also added that now the Fed will focus more on economic performance, which also had an opportunity to slow down the rates hikes in the United States.

As a result, the US dollar index accelerated the decline and broke through a significant support of 96.50, which corresponded to the lower boundary of the downward channel. As a result, the American dollar was significantly oversold, and limited to support levels: 96.30-20 and 96.00.

The US dollar index chart. The current price is 96.40 (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!

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