Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
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.
The EUR made a significant rise on the news of the stimulus expansion. Will it last long?
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…