During the conference in Hague, German Chancellor Angela Merkel said that the EU would find a backstop solution by October 31 (Brexit deadline).
Greenback rebounds from minimums
On Monday, the evergreen buck rebounded from the session minimums versus its counterparts having clawed back losses against the Japanese yen, notwithstanding American existing home sales diving for the third consecutive month.
Gauging the greenback’s purchasing potential versus a group of its key rivals, the USD index managed to ascend by about 0.13% reaching 94.37.
In America, in June, sales of previously-owned houses homes slumped because tight supply kept ramping up house prices, thus deterring potential home purchasers and putting pressure on housing activity.
In June, existing home sales edged down 0.6% versus May to a seasonally updated annual rate of about 5.38 million units. Market experts hoped for a 0.5% leap to 5.46 million units.
The soft American home sales data showed up as the evergreen buck approached the session maximums having fought its way back from the session minimums, reacting to steep losses versus the Japanese yen.
Japan’s currency had ascended versus the evergreen buck earlier in the trading session because a Reuters report, which suggested that Japan’s major bank was about to update its quantitative easing program with the aim of making it more sustainable, suppressed Japanese government bonds, thus helping the major financial institution to offer to purchase an unlimited amount of bonds.
The currency pair USD/JPY stood still at Y111.47. As a matter of fact, the currency pair managed to revive from an intraday minimum of Y110.75.
Sentiment on the evergreen buck has been affected by Trump’s statement the previous week, in which US leader expressed his concern as for a stronger evergreen buck, stressing that it can make the American economy less competitive.
The evergreen buck was also underpinned by weakness in both the common currency and the UK pound.
The currency pair GBP/USD dipped 0.18% hitting $1.3106, EUR/USD sagged 0.18% reaching $1.1700.
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Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.