Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback edges up, although Tillerson firing and soft inflation weigh
On Wednesday, the evergreen buck inched up versus other leading currencies, although revenues were restricted by downbeat inflation data as well as worries over political instability in the face of the unexpected firing of Rex Tillerson, US Secretary of State.
The US dollar index that normally gauges the greenback’s value versus a basket of six leading currencies, headed north to 89.77.
The index concluded the previous session down after on Tuesday the Labor Department informed that American consumer price inflation was still muted in February, dropping a hint that the US major financial institution will probably stick to a gradual tempo of rate lifts in 2018.
The inflation data showed up after the previous week’s jobs report uncovered tepid wage surge, thus relieving worries over a faster than anticipated pickup in inflation.
Some market participants had rumored a firm inflation outcome could assist the Fed in lifting its planned tempo of interest rate hikes above the three expected at the banks’ December gathering.
The Federal Reserve is going to hold a two-day policy gathering next Tuesday. The key bank is generally anticipated to have rates ramped up for the first time in 2018.
The evergreen buck found itself under extra selling pressure right after on Tuesday Donald Trump had Secretary of State Rex Tillerson sacked, replacing him with Mike Pompeo, Central Intelligence Agency Director. The given news affected investor confidence in the evergreen buck.
The major US currency gained ground versus the common currency, with EUR/USD diving 0.10% being worth 1.2378.
The evergreen buck was fractionally higher versus the Japanese yen – the currency pair USD/JPY managed to grow to 106.66.
The major Japanese yen had been suppressed since the beginning of the week due to a soaring scandal having to do with the Japanese Prime Minister Shinzo Abe and his spouse accused of the sale of public land.
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.