EUR/USD: Euro remains stuck at 1,1600-1,1700 levels as no big bets on the table
|The single European currency remains in a limited trading range between the levels 1,16 and 1,17 for another day as investors seem extremely hesitant to take any big bets especially in view of tomorrow's announcement of very important macroeconomic data on new jobs in the United States.
Euro strong upward momentum of the first half of the year has shown strong signs of fatigue in the last 3 months, but the US currency, apart from some good corrections, has not managed to do anything better.
The climate that has been created in relation to trade tariffs, although it has improved significantly, continues to concern investors, and combined with the controversial policy of President Donald Trump, the risks for the American currency not having disappeared.
The yields on US government debt securities, on the one hand, continue to offer satisfactory returns that could potentially strengthen the US currency, but on the other hand, the enormous amount of fiscal debt is frightening and remains a significant risk for the US currency.
But and on the other side of the Atlantic, however, the Old Continent has its own challenges, with political uncertainty in France and the possible debt crisis in some key economies if the issue of Great Britain and France becomes more widespread, is something that currently acting as a drag on the European currency efforts for new intense cycle of upward momentum.
Today's agenda is quite rich, with retail sales in the eurozone and a survey on the course of the services sector in the United States standing out, but in any case these are expected to be overshadowed by tomorrow, where the issue of the Fed cutting interest rates in September may become clearer, depending on the course of new jobs and unemployment in the United States.
In such a foggy environment I would prefer to remain hold , with my thinking about the possibility of buying the US currency at some new peak not changed.
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