Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback is nearly intact notwithstanding dive on Wall Street
On Wednesday, the evergreen buck stood still notwithstanding a dive in American equities overnight. As for key currencies, they were intact too.
Estimating the purchasing power of the American currency against a number of its rivals the USD index lost nearly 0.03% trading at 96.67.
As a matter of fact, the Dow Jones Industrial Average went down by 551.80 points concluding at 24,465.64. Besides this, the S&P 500 slumped by about 1.8% concluding the trading session stateside at 2,641.89. As for the Nasdaq Composite, it declined by approximately 1.7% showing 6,908.82.
Besides this, the Dow along with the S&P 500 erased their profits for this year and they’re currently down by respectively 1% and 1.2% for the year.
As some financial analysts pointed out what's driving the foreign exchange market now are worries of a deceleration in the economic surge. Safe haven currencies, including the greenback and yen, will most probably benefit from this.
Although not a directional driver, American leader kept pressuring the Fed on Tuesday, telling that Interest rates were extremely high. Donald Trump told that the country currently has a problem with the Federal Reserve and this issue is far more serious than anything else.
Besides this, the safe-haven yen slumped a bit versus the evergreen buck because Japanese investors preferred to keep their funds in American as well as foreign markets. The currency pair USD/JPY ending up with 113.00, soaring by up to 0.05%.
Besides this, the currency USD/CNY was intact showing 6.9461.
As for the currency pair GBP/USD, it stood still sticking with 1.2793. Investors actually expect the UK currency to trade sideways until the foreign exchange market gets more clarity on progress in the Brexit agreement.
What’s more, AUD/USD and NZD/USD both rallied by up to 0.3%.
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.