Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Common currency leaps vs. greenback
On Monday, the common currency ascended versus the evergreen buck in the face of the tumbling American currency notwithstanding the dismal data on the Sentix investor confidence indicator of the eurozone because financial markets were already set for a downtrend amid uncertainty in Italy.
Additionally, the relaxation of the situation in Spain and Italy also contributes to the surge of the common currency. Market participants are waiting for a report on production orders from America – this data will probably give impetus to trading.
In June, investor sentiment in the EU headed south abruptly, mostly reflecting political uncertainty in Italy, as a survey by the Sentix Analytical Center disclosed on Monday.
The index of investor confidence declined to 9.3 in June versus June’s outcome of 19.2. It turned out to be the lowest outcome since October 2016. Additionally, it was below the anticipated reading of 19.0.
The current situation index headed south to 34.5, having noted the worst value since April 2017 versus 42.8 last month. Simultaneously, the expectations index accounted for 13.3 - the lowest value since August 2012.
Market participants still hope that the world trade dispute with the United States won’t get out of control.
In Germany, the indicator of investor sentiment sank a lot in June, hitting 18.5 versus May’s outcome of 23.5.
The UK currency tacked on versus the evergreen buck, approaching a crucial mark of $ 1.3400 due to upbeat data on the index of business activity in the construction sector PMI of the United Kingdom for April.
Surge in construction activity in the United Kingdom was intact in May, according to the survey data from IHS Markit as well as the Chartered Institute of Procurement & Supply.
In May, the index of purchasing managers in construction accounted for about 52.5.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.