EUR/USD: Euro remains above 1.1200 as mild reaction mode still in play
|The single European currency maintains a mild reaction behavior, having absorbed almost all of the sharp losses at the beginning of the week, where it was found at low levels of 1.1065, which are 500 basis points away from the recent highs of 1.1575 four weeks ago.
The dust from the weekend's developments with the agreement between the United States and China on tariffs is starting to settle, making it difficult for the US dollar to continue its upward trajectory.
President Donald Trump's controversial personality and his ability to surprise and change the facts from day to day have created significant uncertainty among investors, and although the change in policy has brought some stability, favoring financial markets and the US dollar, the clouds have not completely cleared.
US Treasury yields remain high with the 10-year moving above the 4.50 level. Under normal circumstances, these high yields would have been a significant advantage for the US dollar and should have already led it to much higher prices, but this is not happening at the moment and confirms the environment of confusion and great concern among investors.
On the Ukrainian front, unfortunately, there is still no positive development, with the talks in Istanbul starting without significant hopes, since as things show, will not take place at a summit level.
Despite the temporary deviation below the 1,11 level, the market's behavior seems to confirm the scenario I mentioned a few days earlier, giving a good chance that the trading range for the near future will remain between the 1,11 and 1,16 levels.
Today's agenda is quite interesting with some high-profile data being announced, including the growth rate of the eurozone and in the other side of the Atlandic the Producer inflation and the retail sales .
I don't have any significant changes in my thoughts, maintaining some good possibility in the scenario that the range of variation will remain between the levels 1.11 and 1.16, of course with some good deviations as we observed on Monday , but with the US dollar slowly showing some slight advantage.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.