The main market drivers

After the growth of the US dollar against a basket of competitors throughout the day, due to the continued optimism about the US – China trade agreements, the US dollar index updated a high of 98.30. Maintaining optimism and Trump’s statements about the unwillingness to abolish duties on China may return the pessimism of the American dollar  and cause a correction at the end of the week.

So, Trump’s tweet about disagreeing with the refusal of tariffs in China and the fact that China would like to do this, may serve as a reason for the correction of the American dollar, which remains overbought against the main competitors for the week. We should expect a decrease in the US dollar index to support levels: 98.20 and 98.10 against the background of the correction. In the face of declining activity, the growth of the US dollar remains difficult and is limited by resistance levels: 98.40 and 98.50.

Fig. The US dollar index chart. Current price – 98.30 (10-year US government bonds yield – blue line)

Read also: “U.S. Trade opposition. What are the risks? ”

Andre Green

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

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