The main markets’ drivers

America’s stock markets opened below zero following the negative dynamics of European stock indices, thereby restoring market risks and slowing down the decline in safe harbor assets. At the same time, the European session shows the widespread strengthening of the US currency. Risks continue to give support for the dollar and such a rapid growth is due to the resumption of activity in the market after a day off in the US.

The US dollar index against the basket of major currencies has renewed significant resistance at 95.50 and opened the way to 95.70. But after a rapid growth, the American dollar will be limited to overbought. As a result, a repeat test of support levels of 95.50 and 95.30 is possible. An additional driver of strengthening the dollar remains US state bonds that provide direct support for their growth.

The US dollar index chart. The current price is 95.60 (10-year government bonds yield is a blue line)

Read also: “Triangle Model – Trade Strategy”

Andre Green

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

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1. Norwegian Krone. Features of trading Scandinavian currencies
2. Stock indices of America: Canada, Mexico and Brazil
3. Trade balance influence on the country’s economy

Current Investment ideas:

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