Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Euro hits 3-day maximum on trade talk expectations
On Thursday, the common currency kept to a three-day maximum because concerns as for a global trade conflict relieved after the USA along with the European bloc made up their mind to start negotiations on lowering duties.
Following Wednesday’s negotiations with European Commission President Jean-Claude Juncker, American leader Donald Trump informed that they had decided to fruitfully cooperate toward zero duties, zero non-tariff barriers as well as zero subsidies on non-auto industrial products.
However, the moves in the EU’s major currency turned out to be far more subdued compared to stocks. As a matter of fact, car equities managed to ascend 2%, bond profits rallied because traders awaited the fine print to show up on the trade discussions.
The common currency rallied 0.1% being worth $1.1738, extending its soar after leaping 0.4% yesterday, Before the Trump-Juncker negotiations, the euro sank to a minimum of $1.1664.
The very focus for currency markets was the ECB’s policy verdict due later on Thursday exactly where market participants are going to study remarks by Governor Mario Draghi for any further clues on the tempo of policy normalization.
However, another sink of the Chinese Yuan after yesterday's bounce actually undermined broader risk hunger in the financial markets. The Chinese Yuan edged down 0,5% hitting 6.79.
Apparently, a more than 6% slump in the value of the Chinese Yuan versus the evergreen buck since mid-June as trade clashes worsened has pressured export-oriented emerging markets.
For the last two weeks market participants ramped up bearish deals on all emerging Asian currencies, as follows from a Reuters survey.
Additionally, the USD index kept to a two-week minimum versus a group of six key currencies and it declined 0.25% hitting 94.131.
The UK currency stood still showing $1.3202 because hopes as for a rate lift next week from Britain’s key bank backed the British pound.
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