The main market’s drivers
After the growth of optimism in the stock markets, commodity currencies: Canadian, Australian and New Zealand dollars strengthened. Partly strengthening of these currencies was also associated with a correction after yesterday’s decline. The growth of stock indices also carries a corrective nature to a greater extent.
Against the backdrop of waiting for data on GDP, the deflator of GDP, the balance of foreign trade in goods (April) and the number of initial applications for receiving unemployment benefits in the US, market activity declined. This is also caused by the expectation of meaningful statistics and the preference of market participants to take a waiting position. In addition to GDP data, which is expected to be restrained positive dynamics from the US economy, you should also pay attention to the data on the GDP deflator, which is an indicator of inflation.
Despite the restraint of the market, the US dollar index maintains an uptrend, limited to flat from 98.20 to 98.10-00.
Fig. The US dollar index chart. The current price is 98.10 (10-year US government bonds yield is the blue line)
Read also: “Elliott Waves: Wave Formations”
Andre Green
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