The main market’s drivers
The market is trading with a restrained strengthening against the US currency. As it became known, China’s response to the new US duties will come into force on September 24. As a result, the market will expect a third wave of US duties, as stated earlier.
The US dollar index remains at the same time under the pressure of the positive dynamics of the European stock indices, which, in turn, ignore the growing risks of aggravation of the US and China trade relations. It indicates the possibility of strengthening the euro as an alternative safe harbor currency, which gained this status amid the advancement of negotiations on Brexit.
The US dollar index continues to trade lower, testing the support level at 94.30. The next significant support is psychology 94.00, the minimum of July. A test of this level without apparent causes is so far unlikely.
The US dollar index chart. The current price is 94.40 (10-year government bonds yield is a blue line)
Read also: “Emerging markets and their prospects: the Russian ruble”
Andre Green
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