EUR/USD: Mild rise for the US Dollar with the 1.1300 level ready to collapse again
|The single European currency continues to be under mild pressure with the previous week's upward momentum being called into question.
After a temporary rise above the 1.14 level at the beginning of the week, the European currency has shown strong signs of fatigue, while at the same time the US dollar has found support from the calm that has come to US government debt securities.
10-year US Treasury yields have fallen marginally below 4.50, with the possibility of a debt crisis, although very small, not completely off the table. This continues to be a major thorn in the side of the US currency's efforts to return to higher levels.
The overall market picture does not show significant differences with the trading range currently remaining between the levels 1.10 and 1.16, largely confirming my thoughts as they have been reflected in previous articles.
The controversial personality of President Donald Trump, with his enigmatic policies and the instability he has shown in his decisions, continues to worry the markets, and although the temporary agreements have restored some calm, leading the stock markets to high levels again, the risks remain.
The lack of confidence is likely to continue to hurt the US dollar, and although key interest rates continue to be a significant advantage, a strong upward momentum in the US dollar presents a difficult challenge at the moment.
There is nothing that stands out on today's agenda, with the result that US Treasury yields remain in the spotlight, influencing the course of the exchange rate.
Maintaining the exchange rate in the known range of recent weeks remains a good scenario with the possibility of the US currency absorbing a larger part of the previous week's losses remaining on the table.
My assessment that the pair will remain in a consolidation mode for the very near future remains, but I avoid any position as I cannot follow the enigmatic policy of President Donald Trump.
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