Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Sterling approaches two-week peak before UK vote
On Thursday, the British pound traded close to a two-week high, backed by hopes that Prime Minister Theresa May's party will grasp a majority in Britain's general election, while the common currency was intact ahead of a ECB policy announcement.
The British pound stood still at $1.2956, trading close to Wednesday's high of $1.2970, its highest value since May 25.
On Wednesday, opinion surveys revealed that May is on course to drastically increase her majority in parliament, suggesting her gamble to call the vote to shift to a firmer position in Brexit talks will pay off.
If the Conservative Party manages to win a decisive majority of more than 50 seats, it would likely be seen as an upbeat result for the British pound, as some financial analysts state.
The common currency didn’t change, keeping to $1.1254. The common currency had hit a peak of $1.1285 in June, demonstrating its highest value in almost seven months.
The ECB is supposed to keep its monetary policy intact on Thursday. That’s also true for its 2.3 trillion euro bond-buying program.
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.