Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Evergreen buck declines amid hopes for Fed lift
On Wednesday, the evergreen buck headed south due to the fact that market participants are waiting for the Fed rate verdict later in the day.
Evaluating the purchasing potential of the American dollar against its primary rivals the USD index tumbled by about 0.57% ending up with a reading of 96.06 as of 10:21 AM ET.
The key US financial institution is anticipated to have rates ramped up by up to 25 basis points for the fourth time in 2018. It goes without saying that market participants are going to closely watch for any fresh remarks on probable policy updates next year. Besides this, they’re also interested in estimates for 2019, also known as the dot plot.
Fed representatives, including Fed Chair Jerome Powell, have already pointed out that interest rates are getting closer to neutral. Moreover, Fed officials have become more careful about the Fed policy in the face of fears of decelerating global surge.
The evergreen buck headed south versus the safe-haven Japanese yen. The currency pair USD/JPY went down by about 0.3% coming up with a result of 112.19.
Furthermore, the UK currency rallied. The currency pair GBP/USD gained 0.19% trading at 1.2663 due to the fact that British Prime Minister Theresa May is still attempting to work with the European bloc to get assurances on the backstop pact. As for the common currency, it was backed by the lower evergreen buck. The currency pair EUR/USD added by 0.6% reaching 1.1430.
The currency pair NZD/USD managed to rally by up to 0.2% trading at 0.6862. Additionally, the currency pair AUD/USD managed to gain 0.1% hitting 0.7186.
Furthermore, the Canadian dollar surged. The currency pair USD/CAD lost 0.3% trading at 1.3425 after data disclosed that Canadian inflation speeded down in November.
The European central bank will publish the main refinancing rate and make a statement on Thursday, July 16, at 14:45 MT time. Also, the ECB’s press conference will be later at 15:30 MT time.
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The Canadian central bank will announce interest rates and make a speech on Wednesday, July 15, at 17:00 MT time. Also, the BOC press conference will be later at 18:15 MT time.