The main market drivers
Trades on the European session were held under the mood of correction of US dollar positions, but rather under the mood of unloading the overbought dollar. One of the drivers of the dollar correction was the decline of the US dollar against the Chinese yuan and the fall of the pair USD/CHN. Also, the growth of optimism on the European stock markets indicates a reduction in risks, but there is no official data on the reduction of trade volatility.
Commodities also did not become an exception and received support on the general growth of optimism. Oil, in turn, is traded on the data on tightening sanctions against Iran and expecting optimistic data on oil stocks in the US.
The US dollar index is limited to the 95.00 support level, from which it is possible to repel. The general upward dynamics on the US dollar index is preserved, but will be limited to recent highs, which in the end may indicate a slowdown in the uptrend.
The US dollar index chart. The current price is 95.00 (10-year government bonds yield is a blue line)
Read also: “Fundamental analysis: The labor market and its impact on the dynamics of the national currency”
Andre Green
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- Emerging markets and their prospects: Turkish lira (TRY)
- Stock indices: the UK market
- In Focus: Analysis of transactions for a EUR/USD pair during week
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