Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Yen ascends ahead of Japan-US trade negotiations
On Thursday, the Japanese yen rallied to its strongest value versus the evergreen buck for 9 days ahead of the highly anticipated negotiations between Japan and America as well as rumors over when Japan’s main financial institution is going to give up its extremely easy monetary policy.
In addition to this, the New Zealand dollar went down due to the fact its major bank stuck with rather a dovish policy.
While financial markets are still on the edge due to the escalating trade conflict between China and the United States, traders are waiting for the key event scheduled to start on Thursday in Washington. Market participants hope that Japan is going to try averting harsh duties on its auto exports and reject American demands for a bilateral free trade pact.
Japan’s currency has dived nearly 4% versus the evergreen buck for the last six months, driving rumors that its depreciation could turn out to be an issue in the upcoming negotiations because the current US presidential administration has spurred worries over countries knowingly weakening their national currencies.
On Wednesday, the Japanese yen had been backed by the minutes of a July 30-31 BOJ board gathering. The crucial report revealed that one member of the board was eager to allow long-term profits to move in an even wider range than the band indicated by the major financial institution.
Meanwhile, the Australian dollar had tacked on for the past two trading marathons, backed by a recent retreat by China’s currency paused for the time being.
Besides this, the UK currency was nearly intact sticking with $1.2877 after yesterday’s sink to about $1.2854 that happened to be its worst outcome in 2018. However, versus Japan’s currency the UK pound slumped to an 11-month dip of 142.34.
Let’s look what moves the market today.
The European Central Bank will publish the main refinancing rate and make a statement on Thursday, June 4, at 14:45 MT time. Also, the ECB press conference will be later at 15:30 MT time.
EUR and gold moved up