EUR/USD: Confusion, doubt and fear drive the pair
|The intense environment of confusion remains for the exchange rate of the euro against the dollar as on the one hand the prospects for a bold increase in interest rates at the Fed's meeting have been greatly reduced but on the other hand fears that the banking industry in America and Europe may be shaken further limits the losses of the US currency as traditionally functions as a safe haven currency.
The pair beyond a small extension continues to be trapped in the 1,05-1,07 range and has considerable difficulty finding any strong direction.
The latest developments with the rescue of the Swiss bank Credit Suisse , it has removed the worst for now, but the calm and positive clima has not fully returned to the stock markets.
Indicative of the uncertainty are gold prices which after a long period of time are at high levels having already touched 2,000 dollars per ounce.
The latest developments with the significant problem in the banking industry due to high interest rates is expected to pressure the Fed to remain in more dovish tone regarding its future moves and now the possibility of 50 basis points which was quite in the game , now has been greatly reduced.
On today's agenda, President Lagarde speech stands out in which many hope that she will send strong messages of confidence to the European banking sector and general reassure the markets.
The general picture of the course of the market has not changed, I maintain some strategy for buying at dips and selling at the peaks of the exchange rate ,
Especially now , In view of the new developments that limiting the possibility the Fed to move more aggressively , every dip in the pair creates opportunities to buy of the European currency as the reactions continue to be in the game with great fidelity.
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