Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Evergreen buck moves down
On Thursday, the evergreen buck declined versus its counterparts because a deceleration in inflation triggered a series of warnings from market experts that the US currency was approaching another maximum.
Estimating the greenback’s purchasing potential against a number of its primary rivals the USD index declined by 0.27% being worth 94.56.
On Thursday, the Labor Department told that its Consumer Price Index soared by 0.2% in August, which is below analysts’ estimates for a 0.3% jump. The slower tempo of soaring consumer prices in August, brought the year-on-year increase in the CPI down from July’s 2.9% to 2.7%.
The report won’t probably affect the key US bank’s policy stance. However, it gives evidence that the US currency is close to its maximum because valuations are definitely getting stretched, with lopsided positioning.
The evergreen buck also dived versus both the UK currency and euro after updates from the Bank of England as well as European Central Bank.
The currency pair GBP/USD tacked on by 0.50% being worth $1.3107 because Britain’s key bank left rates on hold, although expressed optimism over the country’s economy, referring to both stronger-than-anticipated second-quarter economic as well as wage surge.
The currency pair EUR/USD jumped by 0.45% being worth $1.1678 after the European Central Bank's widely anticipated unchanged rate verdict and also signs the key financial institution is fully committed to ceasing its bond-buying program.
The evergreen buck also showed up on the wrong side of a soar in emerging market currencies right after the Turkish currency jumped in the wake of the Turkish major bank’s decision to have rates lifted to 24%.
The currency pair USD/CAD went down by 0.04% trading at C$1.2991, rebounding from session maximums, suppressed by investor optimism for a successful result from Canada and United States negotiations on a revamp of the NAFTA.
The currency pair USD/JPY jumped by 0.51% trading at Y111.83.
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.