Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Evergreen buck inches down
On Thursday, the evergreen buck dived a bit in Europe due to the fact the common currency neglected a downbeat set of factory orders in Germany, which bode ill for a rapid turnaround in the euro zone’s number one economy.
In February, new orders to German manufacturers headed south by 4.2%, which appears to be the greatest monthly dive for two years, with the sharpest decrease coming from foreign markets beyond the euro zone. In fact, orders slumped by 8.4% on the year. There are signs that the situation didn’t get better in March, especially considering that IHS Markit’s purchasing managers’ index for Germany’s manufacturing sector headed south further to a seven-year minimum in March.
News that American leader will meet China’s rival Liu He later on Thursday had a minor impact on the currency market that seems resigned to waiting for a final agreement to be hit before making conclusions. In fact, the meeting was found a sign that negotiations are getting to their final stage, although The Wall Street Journal informed that America’s insistence on keeping some levies in place on China’s goods is still a key sticking point.
Tracking the purchasing power of the major American currency versus its primary peers the USD index was nearly intact sticking with 96.688. The common currency managed to ascend to $1.1235, the UK pound surged to $1.3178.
The UK currency jumped overnight after British lawmakers dared to ban a no-deal Brexit. It’s still the default result unless the EU’s 27 members unanimously agree to extend the fresh deadline of April 12, or unless UK lawmakers revoke their formal decision to depart from the European bloc, an option, which neither of the two sides wants.
Let’s look what moves the market today.
The European Central Bank will publish the main refinancing rate and make a statement on Thursday, June 4, at 14:45 MT time. Also, the ECB press conference will be later at 15:30 MT time.
EUR and gold moved up