The single European currency is under mild pressures having already fallen below to the 1,0850 level and is struggling to defend that level.
Yesterday did not provide any major surprises , macro news announcements were broadly close to expectations.
Τhe sentiment about the economic activity in the eurozone remains at low levels while the announcement about the growth rates of the European economy was exactly as expected.
From the side of the US economy, the announcement on retail sales temporarily brought the European currency to the fore as they were below expectations. Nevertheless, the only thing that the European currency managed to do is to approach the level of 1,09 again, but it did not manage to secure it and very soon it started to lose ground again.
Τhis behavior confirmed the thought that the European currency is under mild challenge, it is gradually retreating to lower levels, but finding the opportunity for temporary reaction behaviors, as happened again during yesterday.
Τhe questions about the intentions of the two central banks continue to preoccupy investors as on the one hand the European central bank is quite aggressive expecting two more increases in key interest rates, but something that has been widely known for a long time and seems is not capable of refueling some new bullish momentum for the European currency.
On the other hand, the Fed appears to have completed the cycle of raising key interest rates, but leaving several loopholes open to do otherwise if the macroeconomic figures, and especially inflationary pressures, require it.
On today's agenda stand out the announcement of Consumers prices in the eurozone where i don't expect any major surprise and later from the US we have the new housing starts and building permits.
The overall picture of the market remains the same, the European currency continues to be under mild challenge but I do not see any signs of a collapse, so reactions continue to be in play on new local lows.
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The views expressed are solely those of the author and do not represent the official position of Followme. Followme does not take responsibility for the accuracy, completeness, or reliability of the information provided and is not liable for any actions taken based on the content, unless explicitly stated in writing.
Leave Your Message Now