Despite the optimistic outcome of the elections to the European Parliament, the single European currency was not able to maintain its advantage for a long time. Today, the US dollar has risen against all of its major competitor currencies, while the euro is waiting for a rather busy day in the economic calendar.
At the time of writing, the EURUSD pair tested the lower limit of the range next to the 1.1180 mark. The US currency is steadily recovering, while risky assets lose their attractiveness after US President Donald Trump hinted at another tariffs’ increase to Chinese import.
Data on consumer climate GfK for June in Germany, as well as the May releases on consumer and business confidence in the eurozone, will be one of the determining events for the direction of euro.
On the eve, business activity in the markets was reduced due to holidays in the UK and the USA, which limited the movement of currency pairs.
The US currency index this morning rose by 0.1% to 97.751 points.
The single European currency fell by 0.09% to $ 1.1186 after a breakthrough to the level of $ 1.1215 against the background of the results of the elections to the European Parliament, in which pro-European parties received most of the seats.
In addition to the fundamental figures, talks about the trade war between China and the United States will continue to influence both the dollar and the euro, although the markets are likely to be more moderate in their reactions due to the possible signing of a short-term trade agreement between the US and China.
USD fell slightly to the Japanese yen, by 0.06% to 109.43, but it is possible to restore its position during the day. Yen managed to maintain stability, since the American President Donald Trump yesterday urged Japan to reduce the surplus of its trade balance with the United States.
Forex trading recommendations:
EURUSD: Sell. Entry point – 1, 1187. Take Profit – 1, 1185. Stop Loss – 1, 1198.
USDCAD: Sell. Entry point – 1, 3437. Take Profit – 1, 3420. Stop Loss – 1, 3466.
NZDUSD: Buy. Entry point – 0, 6551. Take Profit – 0, 6563. Stop Loss – 0, 6530.
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