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The main market’s drivers
After comments by the US Federal Reserve Chairman Powell on global risks, pessimistic sentiment remains in the market. They are associated with an exacerbation of the trade war and a slowdown in the global economy. Amid these sentiments, the US dollar and Japanese yen recieved a significant support. It is especially worth highlighting the Japanese yen and other safe haven currencies, which look less overbought than the US dollar in the face of increasing risks.
The US dollar index has been very restrained since the start of the European trading session, limiting itself to overbought and resistance at 98.90. The limiting factor for the US dollar is a significant decrease of thef US government bonds yield, which fell to weekly lows. In the future, this may indicate a correction for the American dollar. Support levels: 98.70 and 98.50, resistance: 99.00 and 99.20.
Fig. The US dollar index chart. Current price – 98.90 ( 10-year US government bonds yield – blue line)
Read also: “G20 Summit – what to expect and to beware of”
Andre Green
Earn with the help of the trade service on the news Erste News!
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