EUR/USD: Soft reaction for the Euro, is well defending 1,07 for now
|The single European currency has stabilized for now between the levels of 1,07 - 1,0750 after the new losses suffered during Thursday.
Yesterday had quite a lot of interest from macroeconomic data announcements with the growth path of the German & US economy standing out.
Τhe German GDP announcement was particularly troubling as it showed signs of contraction and if this contraction widens at the eurozone level it will make the job of the European Central Bank in the fight against inflation even more difficult.
Οn the other side of the atlantic the US economy continues to hold good growth rates , outlook remain positive and yesterday's announcement was a pleasant surprise.
The result of yesterday's announcements particularly favored the American currency which was driven to new local high levels against the euro.
In any case, the losses for the European currency were extremely limited and as I mentioned in a previous article, it does not look ready to collapse without showing signs of a reaction, something that is often observed with great fidelity.
In general the market picture remains the same , the Euro currency is in a mildy pressured environment which have sent it almost 400 basis points below the 1,11 level and I estimate that these losses will not be much extend for now.
Αnd today's agenda is of some interest with the personal consumption index and durable goods orders from the United States standing out.
I will stick to yesterday's thinking and avoid any posithions in favor of the US currency at these levels, while on the contrary the buy positions of the euro every time it marks new local lows is not a bad idea , as the reaction is quite likely.
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