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 keeps to 1-year minimum vs. greenback
On Tuesday, the common currency kept to a one-year minimum versus the evergreen buck and the Swiss franc. The euro was still under pressure due to the fact the Turkish lira fluctuated on concerns that Turkey's economic issues could hit European financial institutions and even affect other emerging economies.
The common currency was nearly intact at $1.1410, having dived to a 13-month minimum of $1.1365 on Monday. In August, it has edged down about 2.4%.
Market participants shifted to the safe haven Swiss franc that reached a one-year maximum of 1.1288 franc per euro.
Meanwhile, the Turkish lira went down nearly 0.6 percent hitting 6.955 per dollar, although it hovered above a record minimum of 7.24 hit on Monday right after the major financial institution promised to provide enough liquidity.
The Turkish currency has decreased nearly 30% this month following worries about President Tayyip Erdogan's reluctance to have interest rates lifted notwithstanding strengthening inflation as well as a deepening diplomatic clash with America.
Meanwhile, onshore Chinese yuan that had rebounded nearly 0.7% yesterday, diving along with its emerging market counterparts, managed to strengthen to 6.8851 per dollar.
The Chinese Yuan's bounce was restricted by dismal economic indicators. So, it stuck with a 15-month minimum recorded earlier this month.
The Chinese economy is demonstrating further indications of deceleration due to the fact America is on the verge of slapping even tougher trade duties. For the first 7 months of 2018 investment speeded down to a record minimum, while retail sales slumped, according to Tuesday’s data.
The evergreen buck managed to ascend by up to 0.05% hitting 110.79 yen, rebounding from a 1-1/2-month minimum of 110.10 recorded on Monday.
The US currency was also underpinned versus the Japanese yen by leaps in American bond profits.
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!