Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback heads south
On Monday, the evergreen buck declined versus other currencies, while the Mexican peso managed to grow after Mexico and America agreed to a trade pact.
The both countries came up with a fresh pact in the re-negotiation of the North American Trade Agreement.
US leader Donald Trump labeled it the United States-Mexico Trade Agreement. As for discussions with Canada, they haven’t started yet, but they’re expected to start in the nearer future.
All three governments were trying to come to a compromise before the end of August this year.
Estimating the US currency’s purchasing power versus a pack of its main counterparts, the USD index was still pressured following the news. It went down by about 0.38% coming up with an outcome of 94.72.
In addition to this, the Mexican peso tacked on versus the major American currency. As a matter of fact, the currency pair USD/MXN went down by 1.45% trading at 18.6523.
The evergreen buck went down versus the safe-haven Japanese yen. The currency pair USD/JPY inched down by about 0.19% trading at 111.05. When facing times of uncertainty, market participants are prone to investing in Japan’s currency, traditionally considered to be a safe asset during periods of financial downtime.
A weakening greenback pushed the common currency up. The currency pair EUR/USD ascended by 0.45% being worth 1.1675. The UK pound managed to gain ground. The currency pair GBP/USD jumped by 0.29% reaching 1.2885.
The Turkish lira went down versus the evergreen buck. The currency pair USD/TRY added 2.07% ending up with 6.1013. The lira has been pressured for the last few weeks because Turkey and America disagree over a detained American pastor.
Additionally, the Australian dollar tacked on. The currency pair AUD/USD gained 0.26% showing 0.7344. The currency pair NZD/USD soared by 0.07% demonstrating 0.6693. As for the Canadian dollar, it jumped versus the US currency. USD/CAD dipped by 0.35% showing 1.2982.
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.