Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Euro is underpinned by Draghi
On Wednesday, the common currency kept to a 10-month peak after ECB chief hinted the days of the bank’s quite aggressive stimulus are numbered. The US currency was under pressure after a vote on American healthcare legislation was postponed.
The euro demonstrated $1.1338, having soared 1.4% on Tuesday and reaching g a peak of about $1.1349, which is its strongest outcome since late August 2016.
The rally came up after on Tuesday ECB President Mario Draghi told at a conference in Portugal that reflationary forces had substituted for deflationary ones.
However, any change in the ECB's stance needs to be gradual because significant monetary support is still required and the rebound in inflation will be tied to favorable global financing conditions, as Draghi said.
Market participants told that the common currency could add to its revenues in the nearer future.
The common currency is currently facing resistance at $1.14. It could obtain another boost in case that level’s breached.
Versus the Japanese yen, the common currency inched up to 127.47 yen on Tuesday, which is its strongest outcome since April 2016.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.