Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback leaps to 14-month maximum on geopolitical tensions
On Friday, the evergreen buck rallied versus other currencies, jumping to a 14-month maximum because political tensions suppressed the common currency and Turkish lira.
Estimating the US currency’s purchasing power against its several counterparts the USD index surged by 0.61% reaching 96.04.
Meanwhile, the Turkish lira went down to an all-time minimum versus the evergreen buck right after American leader announced he’d double duties on aluminum and steel from Turkey. The two countries are currently in a diplomatic conflict because of the detention of a US pastor in this Middle Eastern country.
Turkish leader Tayyip Erdogan brushed off worries, telling that it was an anti-Turkish campaign and urged the country’s citizens to exchange their US dollars and gold into lira.
The currency pair USD/TRY managed to rally by 15.02% being worth 6.3488, which is not far from an all-time maximum of 6.6170 recorded a bit earlier.
Additionally, the Russian ruble slumped too. The currency pair USD/RUB soared by 0.85% hitting 67.2560, which is its lowest value since March 2016. It took place after America slapped new sanctions against the Russian government for its alleged part in poisoning an ex- UK spy as well as his daughter in Great Britain.
The evergreen buck slumped versus the safe-haven yen. The currency pair USD/JPY dipped by 0.27% hitting 110.77. Traders are used to investing in Japan’s currency in times of uncertainty.
The lower Turkish lira managed to push the common currency down. The currency pair EUR/USD dipped by 0.88% hitting a 14-month minimum of 1.1426. As for the UK currency, it inched down. The currency pair GBP/USD decreased by 0.44% hitting 1.2770.
The Australian dollar slumped. The currency pair AUD/USD lost 0.88% being worth 0.7308. The currency pair NZD/USD dipped by 0.06% demonstrating 0.6609. The Canadian dollar dipped against the US currency. The currency pair USD/CAD soared by 0.31% hitting 1.3088.
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.