Since negotiations between US and China begins, the US dollar weakened against other pairs. Markets seem to have increased their optimism about trade prospects ahead of the start of the negotiations.
EUR/USD rose on the end of the last week. It’s breaking the 1.1428 resistance line. We could see the pair rising even further, remaining above the upward trend-line. We could see it aiming if not breaking the 1.1482 resistance line. On the other side, we could see the pair breaking the 1.1428 support line and the prementioned upward trend-line, opening the way for the 1.1360 support level.
The hard stance of USA against Iran made China and Germany to put open expressed their resentment on that action.
USA should pay more attention on European interests when they are coming up with sanctions – said by German government. They also said that sanctions against Iran, made by USA, are violate international law! On the other side, China said that they are against the sanctions. They confirmed that their cooperation with Iran was/is fair and lawful.
After a strong rally since mid-April, the USD was seen weakening across the board yesterday with many analysts’ makings a case for the greenback beginning to lose steam. On the other hand Chinese stock market rallied strongly towards the close, boosting risk appetite. Analysts were interested in seeing whether there was a connection between the two facts, as the PBOC did not fix the yuan weaker against the dollar yesterday. Most significant came in the Aussie which rallied to a one-week high against the greenback.