EUR/USD: Euro on defense mode just above 1.1400, awaiting the critical US jobs data
|The single European currency is trading near at the critical level of 1.14 on the last day of the week in anticipation of the very critical data on new jobs in the United States.
The US currency is recording one of the most profitable weeks in recent months, having absorbed some of the significant pressures it had recently received, which had led the exchange rate to levels above 1.18, with the critical level of 1.20 being very close.
Several large investment houses seem to have been proven wrong so far as they given strong chances in the scenario that the questioning of the American currency would continue and levels such as 1.23 or even 1.25 had been set as targets.
In any case, nothing is yet certain, all scenarios are open, as I have emphasized many times and as is constantly being proven, the controversial personality of President Donald Trump with his enigmatic policies in many areas are capable of bringing surprises to the table and overturning the facts from moment to moment.
For now, the good performance of the American economy and the high interest rates that the American currency continues to offer have returned to the investors' agenda, causing the exchange rate to correct and the rally of the European currency of previous months to be called into question.
The issue of trade tariffs continues to capture a lot of market interest and although there are some agreements on the table, the turmoil and the effects expected to be seen in the coming months keep concerns at high levels.
The stock market barometer index S&P, after a period of consecutive new historical highs, has entered a correction environment that may have further room.
This week was quite good in terms of economic news that was announced in the United States and the announcement of unemployment and new jobs later in the day is expected with great interest with the scenario that the American currency has room for further gains remaining on the table, especially if the data does not disappoint and surprises positively.
Although I had given strong odds to the good correction of the European currency and bet in favor of the American currency, the first attempt was successful, but the profit was limited, while I failed to find the right entry point for purchases of the American currency for 2nd time as I was waiting for a new peak more near to 1,20 that never came.
I prefer to remain on hold at current levels as the consolidation behavior with a significant correction has been completed, but without ruling out the possibility that the US currency has room for further gains.
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