The main market’s drivers: optimism began to fade

Restrained negative opening of stock indices in Europe was caused by a correction after growth. The reason for the decline of optimism was also the lack of optimistic statistics and the expectation of the meeting results of representatives of the United States and China.

The US dollar index trades with a decrease in the preservation of negative sentiment regarding the future  US Federal Reserve policy. At the same time, the American dollar is limited by the oversold and downward channel boundaries and support levels: 96.70-60. Against the background of a more significant correction in stock indices and an increase in pessimism, a correction is possible for the American dollar to resistance levels: 96.00-20.

The US dollar index chart. The current price is 95.90 (10-year government bonds yield is the blue line)

Read also: “Fundamental Analysis: Influence of GDP Indicators on World Currencies”

Andre Green

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