On Thursday, July 7, trading in the euro ended with growth. The euro rose in price against the dollar by 0.44%, to 1.1842. The pair's gains began with the opening of the European session after breaking the trend line from the top of 1.1895 and accelerated after the European central bank set a new inflation target. The session rally stopped at 1.1868.
The ECB has set a mid-term inflation target of 2%, abandoning the previous wording “below but close to 2%”, giving the impression that the eurozone's central bank is more worried about price increases above its target. The regulator will apply the new strategy at the ECB meeting on July 22.
Scheduled statistics (GMT +3):
- At 15:30, Canada will announce the change in the unemployment rate and the number of people employed for June.
- At 17:00, the US will announce a change in the volume of inventories in wholesale warehouses in May.
- At 20:00 in the US, Baker Hughes will release a report on the number of active oil rigs.
Current situation:
In Asia, major currencies traded in the red. the yen and franc bear the greatest losses. This is as it should be, they strengthened strongly against the dollar yesterday, today they are correcting. Strengthening of the Aussie and New Zealander is weak amid the surge in coronavirus incidence in the Asian region. Japan has declared a state of emergency before August 22. The growth of a dangerous delta strain is being observed in the United States, Israel, Germany and Britain, which heightens fears of the low effectiveness of existing vaccines against new COVID-19 mutations.
Since the number of diseases is growing in countries with more than 50% vaccinated, then this really raises concerns in the world. The Organization for Economic Co-operation and Development (OECD) has warned that new COVID-19 outbreaks remain one of the top risks to the global economic recovery.
The price corrected to 1.1825 from 1.1868. The price is above the balance line. Look at the price dynamics from June 30 to July 2. Then, too, the price rose sharply and then blocked the growth by updating the minimum. Now a similar situation, but it will only work if they start to disperse the topic with the coronavirus. Therefore, you need to monitor the AUDUSD and NZDUSD pairs, as well as gold and stock indices.
If the appetite for risk returns and the dollar index decreases, then we are waiting for the price to return to the trend line. The sooner the price returns to the level of 1.1855, the higher the probability of the trend line breakout with subsequent growth to the level of 1.1890.