Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback extends its losses
On Thursday, the greenback extended its losses versus a group of its opponents due to the fact that a leap in the UK currency resumed on the back of expectations that the EU and Britain are making real progress in Brexit negotiations.
Evaluating the purchasing potential of the key American currency against its primary rivals the USD index headed south by 0.81% trading at 96.12 having leapt by 2.3% in October.
The UK pound built on early profits. The currency pair GBP/USD rallied by 1.46% being worth 1.2950.
The UK currency was backed by reports that the EU and Great Britain are close to an agreement, which will enable British financial services companies to have continued access to EU markets after Brexit.
The UK pound gained an extra boost after the Bank of England told that there’re scenarios where interest rates could be lifted in case of a no-deal Brexit.
The Bank of England left interest rates intact and added that uncertainty over Brexit is still putting pressure on the British economy.
The common currency slumped a bit versus the UK pound. The currency pair EUR/GBP slipped by 0.77% being worth 0.8809.
Versus the evergreen buck, the common currency jumped. The currency pair EUR/USD hit 1.1403, ascending by 0.81%.
The evergreen buck demonstrated minor reaction to American economic reports disclosing that the labor market keeps tightening, although manufacturing activity speeded down in October.
As the Department of Labor informed, applications for initial jobless claims tumbled the previous week, and the total number of people getting benefits appeared to be the lowest for over 45 years.
The Institute of Supply Management revealed that in October its index of national factory activity headed south to 57.7 from September’s reading of 59.8.
The greenback dived versus the Japanese yen. The currency pair USD/JPY declined by 0.24% being worth 112.65.
The European central bank will publish the main refinancing rate and make a statement on Thursday, July 16, at 14:45 MT time. Also, the ECB’s press conference will be later at 15:30 MT time.
Optimism about the Moderna vaccine improved the market sentiment. Let’s have a closer look, what’s happening today.
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.