EUR/USD: Euro remains on hold above 1.0800 looking for direction

The single European currency at the start of the week remains in a narrow trading range between the levels of 1.08 - 1.0850 as the data on new jobs in the United States on Friday although surprised positively gave only a temporary boost to the US dollar.

New jobs in the United States for  March greatly exceeded estimates, confirming that the labor sector remains one of the main pillars of the American economy.

However, there have been no significant changes in bets for the path of key rate cuts by  Fed, currently concentrated in three cuts, and investors are apparently waiting for additional data mainly on the path of inflation to shift those bets. That's why Wednesday's data on the course of consumer inflation in the United States is awaited with great interest and in case that there are increased prices that will exceed estimates we may have a violent shift in bets, the possibility of fewer reductions in key interest rates will rise and the US dollar is likely to be in the spotlight again.

Today's agenda without being indifferent cannot be characterized as rich as the only thing that stands out is the  investors confidence index in the Eurozone as on the other side of the Atlantic there is  no any major news.

Investors are expected to continue to be cautious and avoid big bets.

Although the European currency shows excellent resistance and relatively easily keeps reaction behaviors in play,  the US currency retains enough reasons to retest the 1,08 level and the exchange rate to move lower.

As my thought to buy the US currency above the 1.09 level before the US jobs did not materialize, for now, I remain on hold and would prefer to consider the possibility of buying the European currency after some sharp fresh dip much lower than 1.07 level.