The main market’s drivers
The market continues to remain in uncertainty, limited to lateral dynamics and Thursday trading ranges. Against the background of position correction before the weekend, the main decline of the American dollar is traced against emerging market currencies. It is caused by uncertainty, an increase in optimism in stock markets and a decrease in the cost of raw materials. Such ambiguous market dynamics are largely due to the persistence of risks around Brexit. Separately, it is worth noting the risks of the US- China trade confrontation, which, as it were, have exhausted themselves, but continue to put pressure on the market.
The US dollar index, following the ambiguous dynamics of the market, is traded in different directions, maintaining a downward trend, despite the published statistics for the United States. The key support for the dollar are the lows of the week 96.50-40, the breaking of which will indicate the test 96.30-20. Resistance is located at marks: 96.70-80.
Fig. The US dollar index chart. The current price is 96.60 (10-year government bonds yield is the blue line)
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Andre Green
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Topical articles of the trader’s blog:
- The US Dollar Index (DXY) as an auxiliary indicator for trading in safe haven currencies
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- Emerging markets and their prospects
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