EUR/USD: President Trump 'struck' again, pressing the US currency above 1.1400 level
|The single European currency just touched the level of 1,14 a little earlier, having started the new week with a mild upward tone in the wake of President Trump's new statements regarding the imposition of additional tariffs on steel and aluminum.
Just last Friday, in the corresponding article, I had mentioned that the markets are following President Trump's enigmatic policy with interest, as the certainty is that surprises will follow one another and the instability that characterizes his policy will remain high on the agenda.
The European currency, although it is also facing its own problems, is taking advantage of President Trump's controversial policies and investor concern and remains in the spotlight.
The broader macroeconomic environment does not show significant changes with the course of inflation on both sides of the Atlantic remaining high on the agenda with central banks most likely not having yet completed the cycle of reducing key interest rates.
The US dollar continues to offer higher interest rates compared to the euro with the prospect of this difference remaining, while the scenario of some expansion in this gap remains a good possibility.
However, the lack of confidence in President Trump's policies and the possibility of a debt crisis, although still small, are worrying investors who are wary of taking big bets in favor of the US currency.
Today's agenda is relatively poor, with the only thing that stands out being the ISM index for the course of manufacturing in the United States.
The scenario of the pair remaining in the known fluctuation range of recent weeks between levels 1,10 and 1,16 remains on the table with good possibility.
I prefer to remain on hold as President Trump's controversial policies still worry me.
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