Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
US currency stands still
On Thursday, the evergreen buck stood still versus a pack of its major counterparts because worries over global trade clashes as well as recent turmoil in emerging markets backed safe haven demand for the evergreen buck.
Gauging the US currency’s purchasing potential versus its key rivals the USD index hit 95.04 descending by 0.33%.
On Wednesday, the evergreen buck slumped, suppressed by a soar in the UK currency that was backed by that news that both the German and British authorities have abandoned main Brexit demands.
The UK pound didn’t change for the day. The currency pair GBP/USD reached 1.2900 having soared by 0.45% on Wednesday.
Market participants were still focused on the US - China trade conflict in the face of worries that an escalation could be inevitable.
American leader could impose an extra $200 billion worth of China’s goods when a public consultation period is over later on Thursday.
Market participants were also closely watching developments in negations between Canada and America aimed at recovering the North American Free Trade Agreement, against the backdrop of several signs that deal is quite close.
The evergreen buck went down versus the Japanese yen. The currency pair USD/JPY dived by 0.16% demonstrating an outcome of 111.35.
The common currency slumped versus the evergreen buck. The currency pair EUR/USD lost 0.13% trading at 1.1616.
The Australian dollar, normally considered to be a gauge of risk, declined. The currency pair AUD/USD headed south by 0.29% trading at 0.7173, which is not far from Tuesday’s minimum of 0.7143 that was the weakest value since May 2016.
The Australian dollar didn’t manage to gain support notwithstanding data overnight disclosing that Australia’s trade surplus rallied more than predicted in July.
Meanwhile, Argentina’s peso and Turkey’s lira pushed higher versus the greenback after recent heavy dives.
The European central bank will publish the main refinancing rate and make a statement on Thursday, July 16, at 14:45 MT time. Also, the ECB’s press conference will be later at 15:30 MT time.
Optimism about the Moderna vaccine improved the market sentiment. Let’s have a closer look, what’s happening today.
The Canadian central bank will announce interest rates and make a speech on Wednesday, July 15, at 17:00 MT time. Also, the BOC press conference will be later at 18:15 MT time.