State of the market: negative sentiment is increasing
On the publication of reserved negative inflation data in China, pessimistic market sentiment intensified. Data on the consumer price index (CPI) of China to a greater extent coincided with the forecast, but also showed a slowdown in the main inflation indicator. This acted as a driver for heightening risks and renewing pessimism about the slowdown of the global economy.
Against the background of growing pessimism, stock indices and risky assets turned out to be under the pressure. The safe-haven currencies, on the other hand, received support and resumed their growth after a long decline.
The US dollar index in the face of rising risks accelerated the decline in the weakening of the US government bonds yield. The US dollar index has overcome support 96.70, than resumed the downward trend and opened the way to support levels: 96.50 and 96.30.
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Hanzenko Anton
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