Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Common currency soars ahead of ECB meeting
On Wednesday, the common currency managed to strengthen because market participants paid much attention to the meeting of the ECB to be held next week.
The common currency hit $1.1738, adding 0.2%, drifting away from the 10-month minimum of $1.1510, recorded on May 29.
On Tuesday, the common currency gained support after Bloomberg agency, citing sources, told that the European Central Bank is going to announce the deadline for the scheduled curtailment of the quantitative easing program at a gathering on June 14.
On Wednesday, at the start of the Asian session, the common currency hit a two-week maximum of 128.95 yen.
The evergreen buck approached 109.93 yen, just the day before getting to 110.01 yen. The evergreen buck keeps reviving after the dive of May 29 to a five-week minimum of 108.115 yen in the face of receding worries as for political instability in the EU.
The UK currency managed to stabilize at $1.3419, soaring 0.62% on Tuesday because of upbeat outcomes of the study of activity in the services sector of the United Kingdom. The British pound kept recovering after the dive of May 29 to a half-year minimum of $ 1.3205.
The Australian dollar went up after the publication of data on the country's GDP that beat market expectations. This currency kept to $0.7657, which is 0.5% than the level of the earlier close.
On Tuesday, the Canadian dollar as well as the Mexican peso found themselves under pressure after White House chief economic adviser Larry Kadlow told that Donald Trump is about to hold separate negotiations with Mexico and Canada. It spurred worries of Washington's escape from the North American Free Trade Agreement.
On Tuesday, the Canadian dollar slumped to a low of two and a half months - C$1,3068 per greenback.
As for the Mexican peso, it hit a 15-month minimum of 20.4705 pesos per US 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.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.