The main market’s drivers
With the negative opening of US stock indices, the US currency received support for the resumption of negative sentiment in the market. In this case, the main driver of negative sentiment remains the negative dynamics of world stock indices, which can be traced from the Asian session, where the strongest narrowing was demonstrated by the China’s indices, which by the results of the trading session declined by more than 1%.
Against the backdrop of growing pessimism, the US state bonds did not remain on the sidelines, whose decline in the US session became a driver for the short-term growth of the dollar. As a result, the US currency index has updated the daily high against the basket of competitors at the resistance level of 94.80, but remained in a downward trend. This indicates the preservation of downward dynamics for the American dollar, despite attempts at correction.
The US dollar index chart. The current price is 94.80 (10-year government bonds yield is a blue line)
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Andre Green
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