The main market drivers

The opportunity to cut rates and stimulus measures in the eurozone to achieve a target inflation rate of 2% remained after the soft rhetoric of the ECB President Draghi, who confirmed keeping the ECB’s policy on stimulus measures.

This returned the US dollar to growth against a basket of major competitors. It is worth to note that general dynamics of the American dollar remains very restrained and limited by weak statistics on durable orders and new home sales in the United States. As a result, this will limit the growth of the US dollar index against a basket of competitors. Significant resistance for the dollar index remains the level of 97.60-70, the breakdown of which completely breaks the downward trend in the US.

Fig. The US dollar index chart. Current price – 97.60 (10-year US government bonds yield- blue line)

Read also: “G20 Summit – what to expect and to beware of”

Andre Green

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Earn with the help of the trade service on the news Erste News!

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