Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback goes down on Trump’s tariff decision
On Friday, the evergreen buck went down, having pulled abruptly back from six-week peaks right after Donald Trump’s initiative to impose tariffs on aluminum and steel took the wind out of the US currency’s week-long revival.
The US dollar index versus a group of six key currencies declined 0.15% being worth 90.185.
The index had already lost about 0.4% overnight, drifting away from a maximum of 90.932, which is its strongest value since January 19, right after on Tuesday Trump revealed that he would impose strict tariffs on imported aluminum as well as steel.
The Trump administration told the tariffs would have American industry protected, although the evergreen buck and Wall Street equities headed south because the plan powered fears of an upcoming trade feud as well as concerns over its potentially adverse impact on the world's number one economy.
While American steel and aluminum producers could derive benefits from high prices, businesses, which have to buy the metals are supposed to suffer losses.
The evergreen buck had dived to the three-year minimum in February, partly due to fears of American protectionism, and such concerns were rekindled because the currency was supposed to recover from weakness suffered nearly all February.
The US currency slumped 0.15% hitting 106.065 yen, having dived for the last two trading sessions versus the Japanese currency that tends to earn in times of risk aversion as well as equity market weakness. As a matter of fact, the major US currency sank to 105.960 yen, thus demonstrating its weakest result since February 16.
The common currency tacked on 0.1% being worth $1.2276 having edged up 0.6%.
The British pound didn’t change, sticking with a reading of $1.3780 having bounced overnight from an almost two-month minimum of $1.3712.
The Australian dollar stood still at $0.7759, the New Zealand dollar rallied 0.3% hitting $0.7271.
Let’s look what moves the market today.
The European Central Bank will publish the main refinancing rate and make a statement on Thursday, June 4, at 14:45 MT time. Also, the ECB press conference will be later at 15:30 MT time.
EUR and gold moved up