Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback stands still with American tax reform in focus
On Tuesday, the evergreen buck stood still versus other key currencies because market participants were still cautious as for progress on the American tax reform front. Additionally, they waited for the publication of American housing sector data a bit later in the day.
Trading volumes were believed to become more thin throughout this trading week prior to the Christmas holiday.
The US currency got support after on Friday Republicans put the finishing strokes on an anticipated tax overhaul bill. They don’t doubt that this week Congress will approve this bill.
Aside from that investors were waiting for reports on American building permits as well as housing starts to be unveiled on Tuesday. It will give them further clues on the strength of the housing market.
Tracking the US dollar’s value against a trade-weighted basket of six main currencies, the US dollar index was nearly intact, sticking to 93.19.
The currency pair EUR/USD soared 0.12% trading at 1.1795. USD/JPY didn’t change, showing an outcome of 112.53.
Risk-on is back on the market. Riskier currencies and stocks are in favor. Gold is rising too as investors try to hedge.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...