Daily market commentary: The Dollar Index is rising


Daily Market News

ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for October 9, 2019. See details below:


FOREX

The Dollar Index, which measures the performance of the greenback against a basket of other major currencies, has been rising for the last three sessions and is approaching the 99 level. This strength can be explained by the escalation in trade tensions between the US and China, supporting the dollar which is seen as one of the go-to currencies during times of trouble through its role as a global reserve currency.

The latest chapter in the ongoing trade dispute started with the US announcing the blacklisting of a number of leading Chinese tech companies, with China retaliating by banning NBA games in the country. This tit-for-tat dispute is setting a negative tone for the trade talks, due to start on Thursday, resulting in a prevailing mood of risk aversion in the markets, as investors don’t believe that there will be a quick solution and the risks to the global economy will remain in place.

Ricardo Evangelista – Senior Analyst, ActivTrades

OIL

The oil price remains in a bearish mode. Despite the exit of Ecuador from OPEC, the main trend is unchanged as investors continue to bet on further declines. The main reason behind this is the expected slowdown of economy, which is pulling down the price.

The trade war between China and the US, and now also between the US and the EU is contributing to this negative scenario and even a rate cut at the end of this month might not be enough for a reversal in fortunes. From a technical point of view, prices could find a first support level at $51-$51.50, which was the low reached in June and August. This would be the first key level to monitor to assess the strength of the bearish momentum.

Carlo Alberto De Casa – Chief analyst, ActivTrades

Related News

arrow

Daily market commentary: The Dollar Index is rising

0

Send this to a friend