EUR/USD: Is Euro's upward momentum over?
|The single European currency came under significant pressure in the wake of the decisions of the European Central Bank, retreating significantly from its peaks of 1,1030, in which he had been after the Fed's decision to raise interest rates and the statements of the chairman Jerome Powell.
In a shocking week so far we have seen strong fluctuations with the European currency temporarily hit new peaks but without so far being able to maintain them.
The development of the market and the announcements were in general quite expected as the amount of the interest rate increase was fully within the estimates and statements of the central bankers were not particularly surprising.
The European currency appeared to be particularly favored after the US Federal Reserve's decision and the statements of the Fed chairman which maintained the latest dovish rhetoric.
Thus the optimism that President Lagarde will maintain a hawkish policy sent the pair to new peaks surpassing the level of 1,10.
Nevertheless, as I pointed out in yesterday's article, all the data were quite '' discounted '' in favor of the European currency and even if President Lagarde did not disappoint the European currency, it was not able to secure and mainten the high levels.
Once again the strategy of buying the US currency at new highs turned out to be a good idea. Although there was some concern as the new top was considerably higher than the previous one and temporarily the position in favor of US dollar created increased concern.
Now the market has turned its attention to today's announcement on the new jobs in the United States, an extremely strong macroeconomic data that traditionally creates significant market moves.
With strong US jobs data which will be at least on estimates and maybe better, it will be very difficult for the European currency to return to recent peaks.
I mentioned just yesterday and although the European currency was holding high prices that the last bullish cycle of the Euro might be near to the end and the latest market picture is starting to create this perspective.
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.