The main market drivers
Amid low-key trading on Monday, the US dollar sharply accelerated its decline against a basket of competitors, and safe harbor assets showed rapid growth. The reason for this was the evidence that Beijing is very pessimistic about the possibility of a trade deal because of the reluctance of the US President D. Trump to abolish trade duties. The United States agreed to their cancellation. As a result, pessimistic market sentiment sharply increased, causing a rapid increase in demand for safe assets in the face of a possible exacerbation of trade tension.
The US dollar index on these sentiments accelerated the decline against a basket of competitors, as did the yield on the US government bonds, updating the recent weeks lows and accelerating a downward correction against growth since early November, actually limiting it to overselling and support levels: 97.80 and 97.70.
Fig. The US dollar index chart. Current price – 97.90 (10-year US government bonds yield – blue line)
Read also: “USD/CNY – an indicator
of the progress of the US-China trade relations ”
Andre Green
Earn with the help of the trade service on the news Erste News!
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