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, getting closer to last week’s peak
On Monday, the common currency managed to ascend, getting closer to the previous week's maximum for three weeks before the ECB gathering to be held this week. The evergreen buck rallied versus the major Japanese currency, as traders neglected geopolitical risks for a while.
The currency pair EUR/USD pair soared by 0.34% coming up with 1.1810. For the last week, this currency pair tacked on by 0.92%.
Demand for the euro is still high ahead of the ECB gathering on Thursday. Financial analysts foresee that as a result of this gathering, the European Central Bank is going to signal about the exact timing of completion of its financial incentive initiative.
The evergreen buck managed to win back the previous dive versus the Japanese yen. The currency pair USD JPY soared by 0.41% being worth 109.99 after the minimum of 109.31 observed during the night trading.
At the weekend, market participants generally neglected geopolitical risks during the G-7 summit that was held in Canada.
US leader Donald Trump didn’t want to have a communiqué signed following the G7 summit. What’s more - he had a conflict with Canadian Prime Minister Justin Trudeau, accusing him of spreading fake statements. Moreover, he didn’t like that the rest of the world treats the United States as a big piggy bank.
Market participants are hoping for a big breakthrough before the historic negotiations between US leader and North Korean dictator Kim Jong-no in Singapore burst out.
The US dollar index, employed to estimate the purchasing power of the American currency versus the group of six key currencies, dipped by 0.14% trading at 93.42.
Additionally, the UK pound rallied against the evergreen buck. The currency pair GBP/USD added 0.15% being worth 1.3428.
The pair USD/CAD soared by 0.32% hitting 1.2966.
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!