The US currency peaked for more than two years in a basket of major currencies today ahead of data that is expected to show that the US manufacturing sector has returned to growth, mitigating concerns about the impact of a trade war with China.
The euro was trading at a minimum value of more than 2 years against the dollar in anticipation of information about inflation in the eurozone, which, presumably, remained weak, allowing us to assume that the monetary policy in the bloc would remain accommodative for some period.
The Australian dollar fell in price after the Reserve Bank of Australia lowered interest rates and expressed concern about rising employment, while the New Zealand dollar refreshed its four-year low, as weak business sentiment continued to negatively affect the currency.
Annual inflation in Germany, the main driver of the European economy, fell to a minimum of almost three years.
USD rose by 0.14% against the Japanese yen to 108.21, approaching the peak of almost two weeks.
The dollar index against a basket of major currencies grew by 0.1% to 99.480, shortly reaching a maximum since May 12, 2017.
The euro dropped 0.1% to $ 1.0887, which is very close to the low of May 2017.
The Australian dollar showed slight growth after the country's central bank lowered interest rates to an all-time low of 0.75%, as expected. However, then the “Australian” lost the advantage and fell by 0.57%, up to $ 0.6714.
The New Zealand dollar dropped 0.42% to $ 0.6238, a four-year low. The decline in business confidence in New Zealand has increased investor expectations for easing monetary policy.
China's financial markets are closed until the end of this week in connection with the celebration of the country’s founding.
GBPUSD: Sell. Entry point – 1, 2292. Take profit – 1, 2265. Stop Loss – 1, 2338.
NZDUSD: Buy. Entry point – 0, 6239. Take profit – 0, 6254. Stop Loss – 0, 6213.
USDCAD: Sell. Entry point – 1, 3254. Take profit – 1, 3236. Stop Loss – 1, 3285.