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 rallies ahead of Trump-Juncker negotiations
On Wednesday, the common currency managed to leap ahead of a gathering, including American leader Donald Trump as well as European Commission President Jean-Claude Juncker. However, profits turned out to be limited with market participants cautious about a trade clash between the two leading economies.
The lack of clarity as for where an escalating trade clash between the European Union and America is heading actually kept most major currencies intact, including the evergreen buck.
The negotiations showed up after America slapped duties on EU aluminum and steel as well as Donald Trump's threats to come up with extra measures against EU-made vehicles.
The common currency tacked on by up to 0.1% being worth $1.1694. Against a pack of main currencies the evergreen buck stood still, sticking with 95.55.
The common currency keeps fluctuating in a sideways range notwithstanding the risk of a trade conflict getting increasingly apparent and also despite numerous political lapses on the part of American leader.
Market participants were also closely watching a ECB policy gathering on Thursday for fresh clues.
Versus the Japanese yen the evergreen buck managed to tack on by up to 0.1% being worth 111.32 yen.
Early this week the Japanese gained some support on hopes that the BOJ might be considering scaling back some of its hawkish monetary stimulus.
Meanwhile, the Australian dollar went down reacting to Wednesday’s data, which disclosed that inflation was still low the previous quarter notwithstanding firm economic surge. It dived 0.2% getting to $0.7407.
Risk appetites were generally solid, underpinned by firm American corporate revenues as well as expectations that China is going to ramp up fiscal support for its national economy.
In addition to this, the offshore Yuan edged up by up to 0.3% trading at 6.7905 per dollar.
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.
Read a short market wrap before trading today!
The United States will publish the non-farm employment change, also known as non-farm payrolls or NFP at 15:30 MT (GMT+3) time on August 6.
Our analyst discusses the latest news and shares his trade ideas on gold, EUR/USD, and S&P 500. Jump in!