Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Yen holds profits in Asia on safe-haven demand
On Monday, the Japanese yen held profits in Asia on safe-haven demand. Japan’s currency was also influenced by mixed data on industrial output as well as producer prices because markets were cautious on efforts by Prime Minister Theresa May just to secure support for a coalition government and waited for major bank gatherings this week.
The currency pair USD/JPY went down 0.06%, trading at 110.27 notwithstanding weaker than expected machinery orders. Meanwhile, Japan posted that core machinery orders for April slumped 3.1% month-on-month, which is below the 0.5% revenues observed.
The US dollar index, gauging the American currency’s value versus a trade-weighted basket of six crucial currencies, went down 0.08%, being worth 97.16.
The currency pair AUD/USD hit 0.7523, sliding 0.09%, while GBP/USD demonstrated 1.2753, going up 0.05%. In Australia financial markets didn’t function on Monday.
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.