Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Evergreen buck keeps soaring, euro slumps
On Monday, the evergreen buck surged, while the common currency slipped due to the fact that fears over Italy’s budget plan annoyed market participants.
The currency pair EUR/USD went down by 0.43% showing 1.1473, rebounding towards the previous week’s one-and-a-half month minimum of 1.1463.
The common currency extended losses because Italy's Deputy Prime Minister Matteo Salvini told that European Commission Governor Jean-Claude Juncker as well as Economic Affairs Commissioner Pierre Moscovici turn out to be the real foes of the European bloc.
Brussels and Italy have been clashing over Italy’s budget deficit plans for the next three years that violate EC rules on having excessive deficits as well as high debt. Nevertheless, on Saturday, Italy was still firm with its stance of not retreating from the country’s spending plans.
Market participants paid attention to the news that the US Treasury is concerned over China’s currency manipulation.
Estimating the US currency’s purchasing potential versus a number of its primary opponents the USD index managed to inch up by up to 0.24% trading at 95.54.
Hopes for future Federal Reserve rate lifts helped to push the evergreen buck up because the revenue on the benchmark 10-year Treasury note headed north to 3.227% the previous week, which is its highest outcome since 2011.
At the same time, the UK pound declined due to the fact that uncertainty over Brexit as well as the Irish border worried traders. The European Union is on the verge of offering Great Britain "anywhere" checks. To put that another way, it means that exports would be examined at the source instead of a port thus excluding the necessity for a hard border. Therefore, the currency pair GBP/USD lost 0.37% trading at 1.3068.
The currency pair USD/JPY declined by 0.52% trading at 113.12.
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.