Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback surges as yields soar
On Friday, the evergreen buck added against the Japanese yen and euro, drifting away from recent minimums, though revenues were capped as traders focused on a showdown between Donald Trump and members of his own party as for a fresh healthcare bill.
Trump informed House Republican lawmakers that he’s on the verge of leaving Obamacare in place and moving on to tax reform if they don’t get behind new healthcare legislation and also back it in a vote on Friday.
In fact, Thursday’s postponement of the vote knocked the greenback as well as stock markets, but the major American currency was given breathing space because Treasury yields rose after Wall Street shares trimmed losses in order to close little changed.
On Friday, in Asia equities took heart and firmed, with Japan's Nikkei N225 gaining 1%.
The greenback surged 0.35%, reaching 111.340 yen, drifting away from a four-month minimum of 110.620 reached overnight.
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.