EUR/USD: Slightly upward, the Euro already reached 1,09
|The single European currency has already touched 1,09 level in a further upward move marking a new high since April 2022.
As the game continues to revolve around the level of interest rates between the two central banks the European currency reaped some additional benefits from the latest statements on Weekend from European officials who maintain hawkish rhetoric about the future intentions of the European Central Bank.
While the European currency had shown strong signs of fatigue last week and the range of fluctuation was limited, the beginning of the new week started with positive tone for the single currency.
Now the estimates for the level of interest rates at which the decisions of the European Central Bank will end in the coming months are converging at 3.25%, higher than the estimates of the previous months.
On the other hand the United States Federal Reserve Bank remains in a momentum where the pace of interest rate increases will have some slow down.
The above it is the main catalyst that has brought the European currency to these levels having recover almost 1,400 basis points from the lows of 0,95 from last September.
Today, although it started with a sharp rise in the euro, i have doubts as to whether it will continue.
As, in addition to the announcement of the Consumer Confidence Index in the eurozone and another speech by President Lagarde, the markets are characterized by the holidays in the Asian stock markets due to the start of Luna year.
And unless there is some major surprise in the announcement and the Lagarde speech it will be difficult for the European currency to close much higher than the 1.0920 that has been found in the early hours of the new week.
In general, although the European currency seems to be starting the new week with a particularly bullish momentum, I continue to believe that the market is under confusion and this momentum will be difficult to sustain.
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