EUR/USD: Euro under question, as risk aversion returns
|The single European currency is under mild pressures in the early morning hours of Tuesday after an extremely quiet Monday where due to holidays in the United States the trading range was extremely limited.
Yesterday's President Day in the US with stock markets to remain closed due to the day off and with nothing major on the agenda in the European environment the exchange rate was limited to just a 30 basis point range creating a good chances for the scalping traders.
This picture seems to be changing dramatically and after yesterday's relative calm today shows quite a different picture and already pressures have appeared on the European currency since early morning.
Αlthough the general picture has not changed In terms of macro-economic figures , there seems to be some development In terms of geopolitical tensions , especially after the visit of President Biden to Kiev , where now messages on de-escalation on the Ukraine front are not positive.
Also with feelings of concern the markets await President Putin speech to the Russian people later in ther day with several rumors on the table that there will be messages that will lead to further escalation with the possibility that he will officially declare the country in a war status .
The agenda without including any extremely important news is not indifferent as several indicators for the economic activity of the services and manufacturing sector are expected today but without any major surprise will have a limited impact on the markets.
Interest seems to be focused for now on the risk aversion seen in the markets which is in favor of US currency as it traditionally acts as a safe haven currency .
Nevertheless, as it has shown in the past, the European currency is not willing to suffer extensive losses without trying to react , but for now the downtrend remains and the possibility to continue is a bit bigger.
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