The main market drivers
Safe haven currencies received a support with the closing of the trading week and the preservation of pessimistic sentiment on the stock exchanges. At the same time, commodity currencies retained a certain share of growth on the overall weakness of the US dollar. It is also worth to note the restraint of the market, especially regarding the British pound, which closes Friday’s narrow flat trading, despite a significant vote in the UK parliament this coming weekend.
The US dollar index updated the low again, despite expectations of correction and significant oversold. In fact, it accelerated the decline on the expectation of the US rates cuts, limiting himself to overselling and support levels: 97.50, 97.30 and 97.00.
Fig. US dollar index chart. Current price – 97.50 (10-year US government bonds yield – blue line)
Read also: “Should we expect
currency intervention from the Bank of Japan?“
Andre Green
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- What to expect from the Bank of England in the face of a tough Brexit
- The results of the US-China trade talks
- Cloudy prospects for the oil market
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