Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
US currency nurses losses at 13-month minimums
On Thursday, the evergreen buck was nursing losses at 13-month minimums versus a basket of the other crucial currencies after the Fed’s fresh policy statement indicated that it might not lift interest rates again in 2017.
The US dollar index, tracking the US currency’s value versus a trade-weighted basket of six crucial currencies, reached 93.33, having hit a minimum of 93.00 overnight, which is the weakest outcome since June 2016.
This month the index has dropped approximately 2% so far and it has lost nearly 8% for the year to date.
On Wednesday, the Fed told that US inflation is still below its 2% objective even as near-term risks to the economic outlook are quite balanced. Previously, the major US bank ascertained that weakness in inflation should be regarded as transitory.
The more cautious tone on inflation powered worries that the Fed won’t hurry to lift rates before the end of 2017.
The greenback stood still versus the Japanese yen, with USD/JPY sticking to 111.23, which is not far from the five-and-a-half week minimum of 110.61 hit on Monday.
As for the common currency, it was a bit lower with EUR/USD demonstrating 1.1720, having soared to maximums of 1.1777 overnight, which is the strongest outcome since January 2015.
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...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.