The main market’s drivers
Following the European trading session on Tuesday, the US dollar strengthened against the euro and safe-haven currencies, but weakened against commodity currencies and, in particular, the British pound. The British were supported by political factors. Namely, the fact that in the current difficult situation with the Brexit British Parliament needs to compromise in order not to get a hard exit from the EU. And it is worth it to compromise some political positions.
The dynamics of the dollar against commodity currencies is due to the positive dynamics of stock indices, which have been trading positively from the start of the day. The US dollar index itself is limited by the resistance level of 96.70-80, which corresponds to a Friday high. With weak US statistics and the absence of significant drivers, there is a high probability that the dollar will not be able to break through this resistance. Support levels: 96.50-40.
The US dollar index chart. The current price is 96.70 (10-year government bonds yield is the blue line)
Read also: “TOP-10 articles of Ester Holdings for 2016”
Andre Green
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- Prospects for the euro based on the ECB policy
- Brexit vote results
- Prospects for Boeing shares after the planes crash
Current Investment ideas: