EUR/USD: Is the Εuro's bullish rally over?
|The single European currency is showing signs of fatigue as after the last strong upward momentum we have seen corrections in the last two days.
As we noticed in yesterday's article the continuation of the strongly upward momentum would be a surprise and the appearance of the corrections as I mentioned it was the most likely scenario something which was confirmed.
The pair shows a mixed picture with the pair moving in both directions but showing difficulty securing levels well above 1,04.
The mixed picture of the market was also led by yesterday's agenda as no any news or any statement from Fed's or ECB's officials did not act as a catalyst for any strong movement in one direction or the other.
The market continues to create significant question marks for me as the picture remains cloudy and beyond the expected correction after the jump of the European currency, I find it difficult to see the next move.
However, I believe that the chances of this correction taking on a larger extent are quite high, with the result that the European currency should return in lower levels again.
US debt yields did not show any significant volatility and although they have returned from high prices remain in attractive levels.
The picture from the stock markets show a calm mode without sharp fluctuations something that does not affect the exchange rate for now.
But the signs of fatigue as we mentioned in a previous article have appeared and there is a difficulty for the main stock market indices will be able to continue the latest upward momentum.
Today the economic agenda is quite rich with the announcement on the course of inflation in the Eurozone standing out , and next the numbers for the New Housing starts for October in the US are expected with interest.
As recent announcements on the path of inflationary pressures on both sides of the Atlantic are the key catalysts for the exchange rate development any significant deviation from the expected number is sure that will act as a trigger for some sharp swings today.
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