The main market’s drivers
On Monday trades the US dollar is restrained against the basket of competitors. In this case, the risks about the US currency remain. The main pressure on the dollar comes from the upcoming Fed meeting, the results of which will be published on Wednesday. Over mild rhetoric from the Fed meeting is expected, and even lowering the forecast for a rate hike this year. Earlier, the US Federal Reserve predicted two planned increases, but in the light of recent events, this forecast will be revised downward. Separately, it is worth noting the upcoming new round of trade talks between the US and China, which also has a restrained negative impact on the US currency.
As a result, the US dollar index, despite the expectations of a correction against Friday, demonstrates a moderate movement near the opening of the week and more limited to a sideways trend, which ultimately can cause the formation of a flat near the level of 95.80 and the resumption of decline after the dollar is oversold.
The US dollar index chart. The current price is 96.80 (10-year government bonds yield is the blue line)
Read also: “Interest rate. Analysis of changes in interest rates based on economic indicators “
Andre Green
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