The OPEC meeting and the US Nonfarm Payrolls rocked the market last week. The market is torn between optimism about the global economic recovery and concerns about the new coronavirus strains.
Common currency ascends ahead of euro zone data
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program.
The common currency rallied by 0.17% trading at 1.1725 having soared by 0.41% yesterday.
Euro zone GDP figures are anticipated to demonstrate that in the second quarter the annual rate of surge speeded down a bit, while headline inflation is anticipated to stay intact.
The common currency managed to add versus the Japanese yen too. The currency pair EUR/JPY soared by 0.38% trading at 130.49.
After its latest policy gathering the BOJ promised to keep interest rates low enough.
The major bank also made minor tweaks to its asset purchase program for the purpose of making it more flexible. However, market participants had hoped for more radical moves on its part.
The BOJ’s monetary policy tweaks actually reflected the bank’s estimate that it would take more time for inflation to achieve its 2% objective.
Versus the evergreen buck the Japanese yen headed south. The currency pair USD/JPY hit 111.27 adding 0.2% for the day having hit an overnight maximum of 111.45.
Assessing the greenback’s purchasing power versus a number of its main rivals, the USD index slumped by about 0.07% hitting 94.09, rebounding from Friday’s one-week maximum of 94.7.
Market participants are waiting for the conclusion of the Fed’s two-day policy gathering on Wednesday, where it’s expected to announce its third rate lift in 2018 in September.
Additionally, the British pound managed to ascend versus the evergreen buck. The currency pair GBP/USD tacked on by 0.08% trading at 1.3142, although slumped versus the common currency. The currency pair EUR/GBP rallied by 0.11% demonstrating 0.8923.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!