Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Evergreen buck ascends amid weakening of trade fears
On Monday, the greenback kept soaring against the euro, yen as well as many other currencies amid the easing of fears of a trade conflict between China and the United States and a soar in the yield of US Treasuries.
The previous weekend, representatives of the United States and China announced the success of the next round of negotiations, expected to take place in Washington. As Vice Premier of the State Council of the People's Republic of China Liu He told, the sides agreed to take measures, which wouldn’t allow a trade conflict between the countries, including counteraction to the surge of trade duties.
The United States and China definitely suspended the trade feud, US Treasury Secretary Stephen Mnuchin told on Sunday. He added that following the outcomes of bilateral negotiations, Beijing and Washington refused the idea of mutual leap in trade duties.
The dive of the common currency and the evergreen buck is limited by news from Italy and Greece.
In Rome, the populist parties, which managed to win the March election agreed on the candidacy of the prime minister. On Monday they are expected to present the candidate as well as the new government to the Italian president Sergio Mattarella. The name of the upcoming prime minister won’t be uncovered before the visit of the leaders of the parties "League" and "Five stars" to the president. However, according to sources of the agency Bloomberg, a law professor from the University of Florence Giuseppe Conte will become the prime minister.
Meanwhile, Greece and its creditors eventually came to a preliminary agreement on the group of reforms required to complete the 8-year program of financial assistance to Greece.
The common currency dived to $1.1735 against the evergreen buck compared to $1.1772 at the close of the previous trading session.
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.