Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Evergreen buck rallies on upbeat American data
On Monday, the evergreen buck managed to surge versus the common currency and UK pound, backed by the relative strength of the American economy, although moves were still minor because many traders were still away for the long Easter weekend.
Eventually, financial markets in Hong Kong, Australia as well as many key countries in the European Union are unavailable on Monday for the Easter holiday. Currency trading is on worldwide, although the volume is anticipated to be light.
The evergreen buck has gained support for the last time on the back of a gradual ascend in American 10-year Treasury gains as well as signs of strength in the world's number one economy, in particular, better-than-anticipated retail sales in March after a dismal start to the year.
The USD index last dived by 0.1% hitting 97.369, diving a bit having demonstrated a 0.4% rally the previous week.
The USD index was still within shocking distance of its 2019 maximum of 97.71 recorded in early March.
Traders’ immediate focus is going to be on American existing home sales for March, as they require further cues on the health of the American economy.
In February, American home sales managed to rally to their highest value for 11 months because the American housing market demonstrated renewed momentum after a pause in interest rate lifts by the major US bank.
The common currency declined a bit, hitting $1.1244, thus contributing to previous week's losses of about 0.5% after Thursday’s data revealed that activity in Germany's manufacturing sector went down for the fourth month in a row in April.
The UK pound slumped by 0.05 reaching $1.2994, diving below the $1.30 mark and also about 0.4% off a two-month minimum of $1.2945 recorded in March.
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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.