Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback is poised for weekly drops after Fed disappoints bulls
On Friday, the evergreen buck licked its wounds in Asia trade, wallowing at five-week minimums against a currency basket and staying on track for weekly losses after the Fed signaled fewer interest rate lifts than some market participants had expected.
In spite of the fact, on Wednesday, the major US bank delivered an interest rate lift as broadly anticipated, it didn’t alter its earlier forecast for a total of three rate lifts in 2017.
It disappointed greenback bulls who had hoped for hints of a probable fourth lift in 2017.
The dollar index, gauging the greenback against a basket of six crucial counterparts, slid 0.1% to 100.26, having tumbled to 100.21 overnight, its lowest outcome since February 9. For the week it lost 1%.
Against the Japanese yen, the greenback slid 0.1%, hitting 113.44, descending 1.2% for the week ahead of Monday’s Tokyo public holiday.
The Japanese yen gained notwithstanding steeply diverging monetary policy expectations.
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.