Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Evergreen buck rallies on US-China trade deal expectations
Information is not investment advice
On Monday, the evergreen buck jumped reacting to news that China and America were close to making an agreement to finish a long lasting trade conflict.
On Sunday, the Wall Street Journal informed that the US cabinet could raise most or all of its levies on China’s goods, while a summit between Donald Trump and his Chinese rival Xi Jinping to sign a final trade agreement could occur later this month.
It followed remarks from Trump the previous week that he had asked Beijing to immediately remove all duties on American agricultural products because trade negotiations were progressing well.
Assessing the purchasing potential of the evergreen buck versus a number of its primary counterparts the USD index accounted for 96.51, demonstrating its best outcome since February 22.
Investors looked past remarks from American leader who told that the major US bank’s tight monetary policy was contributing to a firm greenback and affecting America’s competitiveness.
Versus the Japanese yen, the evergreen buck surged to 111.93, which is not far from Friday’s maximum of 112.07.
The common currency went down by 0.3% hitting $1.1336, which is the lowest value since February 25. Financial markets are closely watching the ECB’s monetary policy gathering later this week for further clues on whether it intends to have its Targeted Long-Term Refinancing Operation relaunched or not.
In addition to this, the UK pound gained support on easing worries that the United Kingdom will leave the EU without a deal after Prime Minister Theresa May told the previous week UK lawmakers would vote on a delay to Brexit if they decide not to approve her withdrawal pact.
Eventually, the UK pound rallied by 0.2% hitting $1.3238, making its way towards its eight-month maximum of $1.3351 recorded the previous week.
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.
The market sentiment deteriorated amid fresh US-China tensions. Investors remain cautious as increasing virus cases may damage economic activity again.
Risk-on is back on the market. Riskier currencies and stocks are in favor. Gold is rising too as investors try to hedge.