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.
Euro tacks on
On Tuesday, the common currency managed to ascend because political risk in Germany receded, while the evergreen buck and the Japanese yen both dived due to the fact that worries over trade tensions relieved, although market sentiment was still uncertain.
The currency pair EUR/USD soared by 0.26% hitting 1.1669 having concluded the previous trading marathon down 0.32%.
The common currency was backed after German Chancellor Angela Merkel managed to come to a compromise as for immigration policy with her coalition colleagues, thus tackling an issue, which could potentially question the very future of the German government.
Gauging the greenback’s purchasing power versus six main currencies, the USD index slumped by 0.2% being worth 94.41.
Asian markets demonstrated a late soar having slipped overnight, although market participants were still on edge ahead of a looming deadline in the trade clashes between China and America.
American duties on $34 billion of China’s goods are due to come true on July 6. Meanwhile, China is on the verge to strongly respond with duties of its own on the same value of American goods.
American leader Donald Trump is overwhelmed with ambitious plans to have America’s key trading partners penalized, including the European bloc, Canada and Mexico, which is in line with his 'America First' stance, which many traders fear will impact global surge.
The evergreen buck inched up versus the Japanese yen. The currency pair USD/JPY rallied to 110.98.
The common currency rallied versus the Japanese yen too. The currency pair EUR/JPY added 0.36% being worth 129.52.
As for the UK currency, it tacked on, with GBP/USD gaining 0.27% trading at 1.3156.
The trade sensitive New Zealand and Australian dollars managed to grow too. The currency pair AUD/USD tacked on by 0.64% being worth 0.7386, the currency pair NZD/USD gained by 0.15% coming up with a reading of 0.6725.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!