Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback inches up ahead of inflation data
On Tuesday, the evergreen buck managed to ascend versus a basket of other leading currencies. It’s because market participants looked ahead to American inflation data later in the day that could potentially provide insights into the tempo of rate lifts by the US major financial institution in 2018.
The US dollar index, valuing the greenback’s strength versus a bunch of six leading currencies, rallied 0.19% reaching 90.06.
The Labor Department is expected to issue American CPI data this day that is believed to officially confirm that inflation is still moderate despite the labor market keeps tightening.
A higher reading could drive hopes that the Federal Reserve could have interest rates lifted four times in 2018 versus previously expected three times. The vast majority of market participants hope a rate lift would take place at the Fed approaching policy gathering
The previous week’s data pointing to a slowdown in wage surge in February notwithstanding firm jobs growth had tamed hopes that the American key financial institution might project four rate lifts for 2018 rather than three.
Meanwhile, the common currency went down, with EUR/USD heading south 0.11% showing a result of 1.2325.
The US currency gained ground versus the Japanese yen. As a result, USD/JPY rallied 0.5% being worth 106.94, adding from an overnight minimum of 106.25.
The Japanese yen had initially tacked on overnight amid a soaring cronyism scandal closely connected with the Japanese prime minister as well as his wife reportedly having to do with the sale of public land. As usual, the safe haven yen is prone to soaring in times of market instability.
The British pound went down versus the evergreen buck, with GBP/USD descending 0.08% hitting 1.3894.
As for the Australian dollar, it slumped, with AUD/USD diving to 0.7866. The currency pair NZD/USD gained 0.38% demonstrating 0.7323.
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.