Analysis of the European session
Since Monday was a day off in the United States, market activity on the US trading session was extremely low. The main market movement fell on the European trading session, which was focused on restoring the American dollar after Friday’s decline. One of the main factors behind American dollar growth was political risks around the European Parliament elections.
With the resumption of activity in the market, there is a high probability that investors will return to safe assets, but this will require significant fundamental factors. Such factors could be new statements regarding the exacerbation of the US – China trade tension or the advantage of EU skeptics in the eurozone government.
Under current conditions, the US dollar is supported by the reduction of safe assets. The main dynamics of the American dollar continues to depend on the euro, which remains in the correction phase after growth. The dollar index, despite the attempts of recovery, is limited by the downward dynamics and significant resistance 97.80.
Fig. The US dollar index chart. The current price is 97.70 (10-year government bonds yield is the blue line)
Read also: “Long-term positions on world indices”
Andre Green
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- Cryptocurrencies as new safe haven assets
- The impact of the trade war on the US stock market
- Expectations from the AUD/USD pair for May
Current Investment ideas: