Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback dips to four-month minimum vs. yen after NK fires missile
On Tuesday, the evergreen buck reached a four-month minimum versus the Japanese yen after North Korea launched a missile, which passed over northern Japan. The given act of provocation by Pyongyang has drastically increased global tensions.
The evergreen buck slumped 0.4% being worth 108.81 yen, having dropped to 108.33 yen on Tuesday, which is its lowest outcome since mid-April.
A risk-averse mood dominated the region reacting to the missile launch. Japan's Nikkei stock index N225 edged down to its lowest value in almost four months.
The Japanese yen tends to derive benefits during times of financial or geopolitical stress because Japan happens to be the world's leading creditor nation and it boasts a current account surplus.
There’s also an assumption, which Japanese traders might probably repatriate funds in case market turmoil persists and worsens their risk appetite.
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.