Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback inches down for fifth day
On Thursday, the evergreen buck kept diving for a fifth day in a row because receding worries over trade clashes powered appetite for riskier currencies, although thin month-end markets reported losses.
Versus its key counterparts, the evergreen buck held at a one-month minimum of 94.52 due to the fact that some investors are assured that a trade pact between Canada and the United States would cut the pool of money, which has flocked to the evergreen buck in recent days on worries that any escalation in trade clash would be beneficial to the greenback.
On Wednesday, Canada and the United States expressed optimism that they could strike another NAFTA deal by a Friday, although the Canadian government told that a number of tricky issues were still there.
Notwithstanding volatile overnight markets in Asia, investor risk appetite in currencies is broadly recovering because trade war worries seem to be fading that should pressure the evergreen buck.
The UK currency led currency gainers on expectations that the United Kingdom and the European Union would agree on future trade relationships before Brexit takes effect.
The common currency was still firm versus the evergreen buck above $1.17 because market participants suggested that a leap in risk appetite would spur the common currency. For the last two weeks it has tacked on more than 3.5% from a two-month minimum.
As market participants’ focus moved to the NAFTA as well as Brexit talks, the evergreen buck didn't obtained much support from weak emerging market currencies, as some financial analysts pointed out.
In addition to this, the New Zealand dollar went down by 1% coming up with an outcome of $0.6645 right after business confidence tumbled to a decade minimum in August.
Meanwhile, the offshore Chinese Yuan slumped by 0.3% reaching 6.8430 per greenback, extending its dives into a third session.
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.