EUR/USD: EUR on hold below 1.0800 in a calm day, but room for further losses remain in play
|The single European currency remains in a tight range just below the 1,08 level as the second day of Easter and a relatively indifferent agenda prevent investors from taking any big bets.
The previous week although it was also characterized by a limited range of trading due to holidays that had started from the first days of the week due to the Catholic Easter led the European currency to mild losses with the 1,08 level being strongly tested and finally retreating.
This development vindicated my thinking as expressed in a previous article as although I maintained a wait-and-see attitude I clearly stated that the possibility of the 1.08 level collapsing is increased.
Several macroeconomic figures announced last week supported the mild rise of the US currency as it was confirmed once again that the American economy has a clearly better pace compared to its European counterpart.
High prices in international stock markets continue to be a concern and for now support the European currency from further sharp losses but my thinking on the increased possibility of a major correction which would strengthen Dollar - which traditionally acts as a safe haven currency - remains in the table.
On today's agenda the only thing that stands out is the index of the ISM institute for the course of the manufacturing sector in US as from the Old Continent there is no any news or speeches.
The scenario the exchange rate staying in a limited range of fluctuation gathers the most chances as the second day of Easter and the holiday mode in which the markets remain does not favor big bets.
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