Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Evergreen buck inches down to 2-1/2 week minimum
Information is not investment advice
On Monday, the evergreen buck slumped to a two-and-a-half week minimum because market participants pulled back ahead of the Fed’s meeting a bit later in the week.
The major US financial institution is anticipated to keep rates intact at its latest policy gathering on Wednesday, although its update on rate estimates is going to be closely watched.
Measuring the purchasing power of the key US currency versus its primary peers the USD index went down by 0.1% ending up with 95.958.
Recent downbeat economic data could result in loosening monetary policy. The major US bank has told it’s going to be patient and review data before lifting rates in the nearer future.
Market participants currently expect no interest rate lifts in 2019, as follows from Investing.com’s Fed Rate Monitor Tool.
Wednesday’s gathering appears to be the start of major bank decisions, with the Bank of England as well as Swiss National Bank anticipated to meet on Thursday. As for Russia’s key financial institution, it will meet on Friday.
Versus the safe-haven Japanese yen, the evergreen buck inched up. As a matter of fact, the currency pair USD/JPY rallied by about 0.1% coming up with 111.57.
As for the UK pound, it went down due to the fact British Prime Minister Theresa May is struggling to push her Brexit bill through the country’s parliament for the third time, even as experts expect her to fail once again. Well, if she fails to push it through once again, she’ll be bound to ask the EU to have the March 29 deadline extended. The currency pair GBP/USD went down by 0.4% ending up with 1.3242.
The currency pair AUD/USD jumped by 0.2% being worth 0.7093. The currency pair NZD/USD surged by 0.2% showing 0.6855. As for the Canadian dollar surged. The currency pair USD/CAD gained 0.01% hitting 1.3330. The currency pair EUR/USD managed to jump by 0.2% trading at 1.1341.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
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.