EUR/USD: Dollar is under challenge approach 1,1800 on US GDP day
|The single European currency maintains a mild upward trend for the second consecutive day approaching the critical level of 1,18 pending the announcement of United States growth rate and other important macroeconomic data in a stormy agenda.
The recent announcement of 25 basis points interest rates cut by Fed continues to affect the US currency and after the temporary correction the dollar has once again come under pressure, with today being considered critical for the course of the exchange rate in the near future.
The rich agenda combined with the shallow market due to the upcoming Christmas holidays could, in the event of a significant surprise, create an environment for sharp fluctuations.
Although the European currency has returned to the spotlight, it is still maintained within the familiar fluctuation ranges of recent weeks, with 1.20 being the next challenge that would shake up the overall market picture, which so far remains unchanged.
The resurgence of a possible new tension between Israel and Iran does not seem to affect the markets so far, with international stock markets remaining close to historic highs.
Some small corrections that have appeared on the table in international stock prices have partially confirmed some thoughts as expressed in previous articles but have not been of greater extent, something to which I continue to give a good chance.
Today's agenda beyond the growth rate of US economy includes durable goods orders, industrial production, the consumer confidence index.
The recent rise of the European currency cannot be considered a surprise as the exchange rate, as I mentioned above, remains within the known fluctuation range of recent weeks and has not yet broken through any critical levels.
I continue to be unable to discern any specific direction and for this reason I prefer to remain in a wait-and-see attitude, while maintaining the idea of a possible purchase of US currency if the exchange rate approaches the level of 1.20.
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