EUR/USD: Euro remain stable in the 1,07 ahead of EU's GDP
|The single European currency remains stable near the levels of 1,07 in an extremely limited range of variation awaiting the announcement later in the day on the development path of the European economy.
Wednesday was relatively a very quiet day of trading , there were no surprises and the Exchange rate remained hovering either side of the 1,07 level.
As we move ever closer to the European Central Bank meeting next week investors will continue to remain cautious avoiding big bets in favor of one currency or the other.
While From the Ecb's perspective the landscape is clearer with the 25% hike fully priced in , several clouds remain on Fed's outlook.
Bets are gathering on the possibility that the US Federal Reserve has completed the cycle in raising interest rates but the latest surprises from BOC and the RBA leave open the prospect that there will be a surprise from the Fed as well.
The relatively strong US jobs sector and a possible higher inflation announcement next week are likely to greatly increase the chances of this surprise.
On today's agenda stands out the announcement of the revised estimates for the growth path of the European economy and some possible surprise may give direction to the pair and escape from the very narrow trading range.
Without any surprise It would be difficult for today to see any strong direction and the pair breaking some critical levels, with trading remaining in a narrow range of variation being the most likely scenario.
Αs the general picture of the market does not show significant changes my strategy remains relatively the same. Although the US currency looks capable of continuing a mild upward momentum I would avoid holding positions in favor of the dollar at these levels and instead focus on positions in favor of the euro each time it makes some sharp dips as reactions continue to be in play with excellent fidelity.
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