EUR/USD: Central banks week, no changes expected, but comments can make the difference
|The single European currency remains close to the levels of 1,0750 at the opening of the new week as the Friday although marked by high volatility due to the announcement of new jobs in the United States did not give any new direction to the pair.
The figures pleasantly surprised and showed that the labor sector remains one of the main pillars and one of the main reasons why the American economy maintains a much better pace than the European.
With the labor sector in the United States remains strong and unemployment remains at low levels, the possibility that the de-escalation of inflationary pressures that we have observed recently will not have the same continuity comes back to the table.
This rationale may fuel bets that the US Federal Reserve will keep interest rates high for a longer period of time which is capable of supporting the US dollar.
That's why tomorrow's announcement on the course of Consumer Inflation in the United States is expected with great interest and is capable of strengthening or not such bets.
Αt the same time this is a week with meetings from most of the main Central Banks with Fed, Boe and Ecb to decide on the course of the rates, but no any change is expected.
Interest is mainly focused on the statements of the Presidents after the decisions and whether there will be any specific messages about future intentions.
Today's agenda is extremely poor and ahead of the next days where the agendas are extremely rich with critical announcements as well as official statements, for today the most likely scenario is the exchange rate to remain in a narrow fluctuation band with no surprises.
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