EUR/USD: Investors appear wary of taking further big bets on Euro
|The single European currency remains close to 1,750 level with investors continue to maintain a cautious stance as the strong upward momentum of the European currency is currently on hold, as significant thorns lie in the minds of investors regarding the prospect of the euro moving very easily above 1,20 level.
After the new peak at 1.1920 last week, the exchange rate has found itself in a consolidation environment and is trying to digest the current levels while looking for the trigger for the next strong move.
A relatively predictable behavior that confirmed a large percentage of my thoughts as they have been formulated in previous articles.
The controversial personality of President Donald Trump has returned to the spotlight as his latest statements show a complete shift in his perspective towards Russia, something that is likely to significantly increase geopolitical risks in the near future.
At the same time, the front of French political unrest remains open, with analysts expressing significant concerns regarding the course of the French economy in the event of major political instability, something that will certainly affect the Eurozone, as France remains its second largest economy.
At the same time, in his recent statements, the chairman of the Fed diversified the bets regarding further reductions in key interest rates, with the upcoming economic data being awaited with great interest as they are what will influence the next Fed decisions.
Today's agenda is quite rich, with a fresh update on US growth rate , the weekly Initial Jobless Claims and several statements by Fed officials stand out.
Regarding the near future, I would maintain a good possibility in the scenario that the consolidation behavior will be maintained for a while longer as investors remain extremely cautious, especially in the prospect of new large bets in favor of the European currency.
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