Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback rallies on trade war jitters
On Wednesday, the evergreen buck went up, attracting safe-haven bids following reports of further tension in US-China trade talks, although its profits were minor, with caution anticipated from the major US bank at its policy gathering later in the day.
Volatility in the Forex market has receded because of a dovish shift by key financial institutions, including the Fed.
The adverse impact on the evergreen buck from the pause in the major US bank’s interest-rate-lifting cycle has been somewhat affected by a cautious ECB having to deal with a struggling euro zone economy.
The Federal Reserve is generally expected to remain its interest rate on hold.
Bets on an interest rate cut have tacked on following Friday’s weaker-than-anticipated manufacturing data.
Notwithstanding the downbeat outlook, on Wednesday, the evergreen buck managed to rally versus the Australian dollar as well as Japan’s yen and the Canadian dollar.
As a matter of fact, the Australian dollar went down by 0.25% concluding the trading session at $0.7070.
Versus a basket of major counterparts, the evergreen buck rallied by 0.1% coming up with an outcome of 96.454 having demonstrated its lowest outcome since March 1 - 96.291.
The vast majority of currencies are still within well-trodden ranges before the Fed verdict.
Some experts told that the evergreen buck might not dive a lot on the Fed gathering because traders have already priced in the Fed scaling back its interest rate outlook.
On Wednesday, the common currency slumped a bit versus the evergreen buck demonstrating a reading of $1.1344.
As for the UK pound, it headed south by about 0.3% showing $1.3220 on fears that Theresa May’s request to postpone Brexit might fail.
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.