The main market’s drivers: the market remains optimistic in anticipation of the meeting of representatives of the United States and China
On Tuesday, trading took place under a very optimistic mood due to the expectation of a high-level meeting regarding the US and China negotiations, which in fact reduced the risks of exacerbated trading tension significantly and gave the market very optimistic expectations. Also, the reason for optimism was the reduction of risks regarding the re-closure of the US government on the achievement of some compromises on the wall between the US and Mexico.
From the middle of the day, the US dollar index moved to a correction on a slowdown in the growth of optimism and a growth of the raw materials, which significantly affected commodity currencies especially the Canadian dollar (CAD). Despite the attempts of correction, the US dollar index maintains an upward trend, limited to support levels: 96.90 and 96.70.
The US dollar index chart. The current price is 96.90 (10-year government bonds yield is the blue line)
Read also: “The economy of Mexico – it’s time to pay attention to the Mexican peso”
Andre Green
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- Features of trading within a week
- The political crisis in Venezuela and its impact on the markets!
- Fractals. Another simple indicator for earnings!
Current Investment ideas: