The main market’s drivers
The return of US stock indices and weak data on sales in the secondary real estate market in the United States forced the US dollar index to retreat from the highs, and it provoked a correction from the resistance level of 96.00. The reason for the correction of positions, in addition to the technical correction before the weekend, is also the redirection of investments in stocks, which showed a positive report.
The US dollar index remains under significant correction pressure, despite the rapid growth in the US state bonds yields. Therefore, we can expect a moderate correction of the dollar to support levels: 95.70-80 amid growing optimism in the stock markets. In this case, general dynamics of the American dollar remains upward, but is limited to the resistance of 96.00-10.
The US dollar index chart. The current price is 95.80 (10-year government bonds yield is the blue line)
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Andre Green
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