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 pares profits after US tariff announcement
On Thursday, the common currency pared back revenues because the United States imposed steel as well as aluminum duties on the European Union, Canada and Mexico backing away from the maximums of the day reached earlier in the face of receding worries as for the Italian political downtime.
The currency pair EUR/USD rallied 0.08% showing 1.1672, having ascended to 1.1724 earlier.
On Thursday, US Commerce Secretary Wilbur Ross told that America was moving ahead with duties on steel and aluminum imports from Mexico, Canada and the European Union, ending a two-month exemption and setting the stage for a trade conflict.
Evidently, the ratcheting up of trade tensions compensate optimism that the Italian political downtime can be tackled before too long.
The common currency has rebounded, having dived to a ten-month minimum of about 1.1509 on Tuesday in the face of worries that repeat elections in Italy could give a mandate for this European country to abandon the European Union.
New attempts by Italy’s anti-establishment Five Star as well as Lega parties to recover their coalition plans backed expectations for a resolution, although market participants were still cautious because political risk in the euro area was still elevated.
On Friday, Prime Minister Mariano Rajoy is coming across a vote of no confidence in Spain in the government, and the likelihood to pass it is high.
Market participants were wary in the face of everlasting worries as for a trade clash between China and America and also the situation in North Korea.
The evergreen buck turned out to be lower against the Japanese yen, with the currency pair USD/JPY dipping about 0.35% coming up with 108.51, moving back towards Tuesday’s five month minimum of about 108.10 because risk aversion backed the major Japanese currency.
Once in a month, the euro has a very special day of increased volatility at the start of the European trading session.
Canada will publish employment change and an unemployment rate on Friday, at 15:30 MT time.
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!