Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Greenback tumbles as American yields are still low
On Monday, the evergreen buck went down against its key peers, losing traction as American Treasury yields were still low amid fading hopes that the Fed will raise interest rates again later in 2017.
The dollar index dropped versus a basket of six key currencies, showing 97.239, contributing to Friday's losses when it went down 0.4%.
The index had ascended to a one-month high of 97.871 earlier the previous week, underpinned by hopes that the major US bank would tighten its monetary policy again in September.
However, such hopes ebbed over the course of a week, with traders doubtful of another rate soar this year as American data on balance have edged down short of forecasts.
Yields on the benchmark 10-year Treasury note edged up after the major US bank suddenly tightened policy this month, though have drifted down since hopes for low inflation kept boosting demand for longer-dated debt. By the way, Friday's tumble brought it closer to a seven-month minimum of 2.103% reached on June 14.
The US dollar slumped 0.1%, being worth 111.235 yen, drifting away from a near one-month peak of 111.790 achieved last Tuesday.
As for the euro, it gained 0.05%, hitting $1.1198, having risen to a four-day peak of $1.1209 on Friday.
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.