Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback slides on caution prior to Powell testimony
On Tuesday, the evergreen buck decreased versus its key rivals, with market participants quite cautious ahead of testimony from fresh Fed Chair Jerome Powell, which could determine whether the greenback’s revival from a three-year minimum has more room to run or not.
Powell's Congressional testimony is going to be his first public debut since being sworn in as Fed Chair in February. Market participants would like to know whether the new governor will stick with the gradual monetary rate policy run by his predecessor Janet Yellen, or he’s going to take a more aggressive stance.
Early in February, the evergreen buck dived to its lowest value since late 2014 versus a basket of key currencies, although it has since revived nearly 2%.
On Tuesday, the US dollar index headed south 0.1% being worth 89.776.
Some market experts are assured that Powell would be quite optimistic on US the economic outlook. Additionally, they guess Powell would be patient in estimating whether inflation is going to inch up or not.
Many experts agree that the evergreen buck won’t probably be boosted by Powell's highly anticipated speech.
Financial experts surveyed by Reuters expect the core PCE to edge up 1.5% in January year-on-year that would be the same as December's tempo and somewhat way off from the Fed's 2% objective.
This week is literally stuffed with American economic data, including consumer confidence, updated fourth-quarter surge, manufacturing as well as personal income, to say nothing of spending numbers.
As the US currency slumped, the common currency rallied 0.1% hitting $1.2332, with market participants seen unlikely to open big positions this week prior to major political events in the EU.
Against the Japanese yen, the evergreen buck tacked on about 0.1% demonstrating an outcome of 107.05 yen.
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.