The main market’s drivers

As a result of trading in the European session on Monday, the US currency continued to weaken against a basket of major competitors. At the same time, the US dollar strengthened against commodity currencies on the growth of risks and increasing demand for safe havon assets. The increase in risk is caused by the negative start of stock indices in America, which also put pressure on stock indices in Europe.

At the same time, the US dollar index remains under pressure from the soft rhetoric of the US Fed representative. Also, the American dollar has accelerated the decline on the possible risks of reducing the Fed hawk tone. As a result, the American dollar is trading near the support of 96.20, the second significant support is located at 96.00. At 96.00 level is the lower boundary of the two-month upward channel.

The US dollar index chart. The current price is 96.20 (10-year government bonds yield is the blue line)

Read also: “Some Formations for Earnings in Financial Markets”

Andre Green

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