Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Evergreen buck rallies on China-US trade clashes
On Tuesday, the evergreen buck moved up versus other currencies due to the fact that China-U.S. trade relations worsened.
Estimating the US dollar’s purchasing power versus its several primary counterparts the USD index climbed up by nearly 0.12% trading at 95.23.
On Friday, American leader came up with a threat to slap levies on nearly all China’s goods. The extent of this shocking move actually amounts to $467 billion.
At the same time, China intends to ask the WTO for the official permission to slap sanctions on American in compliance with a WTO meeting agenda. The Chinese government is going to place its request next week. It’s going to be a response to Trump’s remarks. Earlier Chinese officials had told they would respond to any trade moves from America.
Hopes for a Fed rate lift in September also assisted to push the evergreen buck up. Another upbeat news was the Job Openings and Labor Turnover Survey that unexpectedly turned out to be better than anticipated.
The evergreen buck moved up against the safe-haven yen. Eventually, the currency pair USD/JPY rallied by up to 0.31% coming up with an outcome of 111.45. In times of uncertainty, a great number of traders are prone to investing in Japan’s currency, traditionally considered to a reliable safe asset during difficult periods of risk aversion.
The common currency declined suppressed by the strengthening evergreen buck. The currency pair EUR/USD went down by 0.06% hitting 1.1586. The UK pound dived too, following news that Bank of England Governor Mark Carney decided to stay on until January 2020, which is 6 months longer than he initially intended to serve. The currency pair GBP/USD lost 0.21% being worth 1.2999.
Meanwhile, the Australian dollar dived. The currency pair AUD/USD slumped by 0.28% trading at 0.7094. Simultaneously, the currency pair NZD/USD dived by 0.32% hitting 0.6504. As for the Canadian dollar, this currency jumped versus the evergreen buck. USD/CAD slumped by 0.16% trading at 1.3143.
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.