Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Evergreen buck sags versus most currencies of developed nations
On Thursday, the major American currency kept sinking versus most currencies of developed nations including the common currency and the Japanese yen notwithstanding the decision of the Federal Reserve to have the cost of lending lifted.
Among the currencies of the key developing countries, the evergreen buck managed to tack on only against the Turkish lira and the Russian ruble.
Following the outcomes of the June gathering, the Federal Reserve had its benchmark interest rate lifted by 0.25% as expected. According to Fed Chair Jerome Powell, the rate lift actually reflects the perfect state of the American economy. Powell pledged that the leadership of the key US bank would keep closely watching the fact that the tightening of the DCT didn’t take place too quickly.
Simultaneously, the forecasts of the leaders of the Fed came with signals about two more rate lifts by the end of this year.
In addition to this, the Australian dollar turned out to be cheaper against all key currencies because of dismal data on the labor market. As a matter of fact, the number of employed in Australia edged up by approximately 12 thousand in May, and on average analysts expected a jump of 19 thousand, unemployment went down from 5.6% to 5.4%.
The common currency managed to ascend against the greenback hitting $1,1808 in contrast with $1,1791 at the close of previous trading session. Previously, the common currency soared 0.4% in this pair.
The evergreen buck went down against the Japanese yen reaching 109.99 yen in contrast with 110.34 yen demonstrated earlier. The major American currency declined by 0.1% versus the Swiss franc and also 0.15% against the UK currency.
The common currency dived versus the Japanese yen hitting 129.89 yen compared to the previous reading of 130.11 yen.
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.