The main market’s drivers
After the US Trade Representative reported that new trade duties on some Chinese goods would be postponed to December 15, and the list of goods subject to duties would be revised downward, the tension around trade risks decreased sharply. The Department of Commerce of the People’s Republic of China has also made a statement of intent to conduct trade negotiations with the United States in the next 2 weeks.
Against the background of a significant easing of risks around the trade war between the US and China, the US dollar and commodity assets rose markedly. The main decrease was shown by the safe haven assets: the Japanese yen, Swiss franc and gold, due to which risky assets with the US dollar increased. Also on the growth of optimism, the commodity market received support. But it is worth noting that this market movement is impulsive and will be limited.
The dollar index returned to growth to resistance levels of 97.80-90, the upper limit of the side channel amid growing optimism in the market. With the growth of optimism, the test of 98.00 is not excluded. The lateral trend is likely to continue.
Fig. 2. The US dollar index chart. Current price – 97.80 (10-year US government bonds yield – blue line)
Read also: “State bonds as a factor to buy one or another currency”
Andre Green
Earn with the help of the trade service on the news Erste News!
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