EUR/USD: Euro above 1,1700 on mild bullish momentum as Dollar is challenged again
|The single European currency maintains a mild upward momentum on the first day of the week having already secured the level of 1.17 as the American currency is again under question.
The data announced in US last week although they did not disappoint were not able to bring the American dollar back to the forefront.
Although the European currency has maintained control over the last 2 trading days , it remains within the familiar range of recent weeks and only a break above the previous June highs at 1.1830 could create the conditions to change the current levels.
The key points that have been of concern to investors in recent months remain on the agenda, monopolizing the market's interest.
The issue of trade tariffs, although it seems to be managed and some agreements have already been put on the table, remains high on the agenda as President Trump's controversial policy leaves no room for complacency as has proven that he very easily creates surprises while his decisions are also very easily changed.
The geopolitical environment remains one of the main risks, as although there are significant efforts to find diplomatic solutions on the Ukrainian front, the thorns remain large as the European Union does not currently seem to be fully in line with the thoughts and actions of the President Donald Trump.
The risk, although not great, of an ''unforeseen'' accident remains which could shock the markets and create the conditions for major unrest.
Today's agenda is extremely poor due to the United States holiday which celebrates Labor Day, with the result that the probability that the range of fluctuation will remain limited and very soon the upward momentum of the European currency will find itself under fatigue conditions is quite good.
The discount of a 25 basis point interest rate cut by the Fed at the September meeting has clearly affected the US currency, but I believe that there will be a relief soon enough, so I prefer to maintain the idea of buying the US currency at a new peak well above the previous highs of June.
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