Today, the market is consolidating moderately. Investors are awaiting the June report on the US labor market. The euro/dollar pair remains flat at the level of 1.1284. Overall, the euro weakened after Christine Lagarde, the head of the ECB, has picked a softer approach to monetary policy. The greenback is stuck in the same trading range due to the mixed economic news. Additionally, traders are less optimistic about the success of the US-China deal. They are thinking over the possibility of a new trade war between the US and Europe. The US dollar is pressurized as the Fed is likely to lower its key rate. The report on the US labor market, highly anticipated by the market participants, will be released on Friday. Meanwhile, the euro/pair is trading sluggishly. Today the US market is closed due to the celebration of Independence Day. The EUR/USD pair may still change its direction
triggered by some unexpected news. The pound sterling stopped its fall. However, the risk that the GBP/USD pair may retreat to 1.2510 is quite high. Thus, the bearish scenario for the pair looks quite likely taking into consideration the declining of the quotes. Generally, traders are uncertain to express sentiment on the GBP/USD pair. However, they are almost certain that the Bank of England will soften its monetary policy because of the recently published weak data. What is more, the Fed is planning to lower its key rate too. Both regulators took a dovish stance to their monetary policy and thereby weakening the currencies. Gold is trading at $1.417 per ounce. Quotes of the precious metal tumbled after yesterday’s breakthrough following Donald Trump’s comments. He intends to nominate Christopher Waller, executive vice president at the Federal Reserve Bank of St. Louis, and Judy Shelton, an economic adviser to the president during his 2016 campaign, to the Federal Reserve’s board. Market participants are more curious about the second candidate. A month ago, Shelton said she would lower interest rate to 0% in two years if she took a seat on the broad. The prices of gold are likely to remain high at least in the short-term amid the latest news.