Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback hits 8-week maximum vs. yen as investors wait for Fed signal
On Monday, the evergreen buck hit an eight-week maximum against the Japanese yen, backed by a soar in American Treasury yields because market participants eyed a Fed gathering starting the next day for further clues on whether interest rates could leap again by year-end.
The US currency recorded its best trading week versus the Japanese yen since November the previous week, earning 2.8% because a leap in American yields increased its appeal and data demonstrating a pick-up in American consumer prices helped to power expectations that the Fed could lift rates again in December.
Apparently, it built on those revenues on Monday because world stocks showed record maximums, hinting at a high appetite across financial markets for riskier assets, soaring 0.5% on the day to 111.41 yen. It turned to be the greenback’s strongest outcome since July 27.
The common currency slumped 0.1% reaching $1.1924, staying below a 2-1/2 year maximum of $1.2092 hit earlier this month.
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.