Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Evergreen buck fluctuates in a narrow range
On Wednesday, the evergreen buck was trading close to a four-month maximum versus the pack of leading currencies ahead of the two-day Fed gathering.
Notwithstanding the fact that the Federal Reserve is anticipated to keep the benchmark interest rate intact at its political gathering, which is supposed to end today, next month it will undoubtedly face it again, considering evident signs of a possible acceleration in the American economy.
This week, the financial markets will also be focused on the April report on employment in the non-agricultural sector of the United States that might affect the further dynamics of the US currency.
Since the beginning of the year, market participants have observed a jump in sales of the evergreen buck. If future data on jobs in the United States show an increase in wages, it will undoubtedly contribute to the appreciation of the evergreen buck. That’s what some financial analysts pointed out.
Market participants are assured that America is on the verge of cutting taxes and US President Donald Trump's plans, a weird economic stimulus during a period of upbeat economic expansion, can further spur inflation and step up rate surge rates.
The Australian dollar moderately soared after the publication of data on the index of activity in the manufacturing sector of China.
In April, the manufacturing sector in China kept expanding at a faster pace than anticipated, as follows from the latest survey conducted by Caixin/Markit. The index of business activity tacked on to 51.1 in April versus an outcome of March - 51.0. Market experts had hoped for the dive to 50.9.
By the way, it’s worth noting that the indicator remains above the level of 50 that traditionally separates the expansion from the reduction.
Moreover, the April survey shows a further moderate improvement in operating conditions in the manufacturing sector of China.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.
The market takes breath after the long rally. What opportunities do traders have today?