EUR/USD: The Euro losing its momentum of correction, falling below 1.0700 again
|The single European currency slips below the 1,07 level as yesterday's rally shows signs of unwinding.
The European currency strengthened in the wake of announcements on the course of the manufacturing and service sectors in the Eurozone and United States.
Without any major surprise, the slight improvement from the Eurozone side with the simultaneous lower than expected business activity in US put pressure on the dollar as a result of which the Euro found an opportunity to move well away from the critical level of 1,06 which has so far managed to defend successfully.
However, as the difference in interest rates between the euro and the dollar remains on the table, as well as the prospect of this difference widening, probably in June with the first reduction in key interest rates by ECB, a further rise of the European currency will face difficulties.
Οn the geopolitical chessboard there have been no major changes, a temporary calm is on the table but the fear of further escalation has not gone away.
The pair appears to be breaking free from the tight trading range it has been stuck in the past few days but without some further major catalyst the European currency's further reaction will not be an easy task.
The behavior of the European currency which brought back a good reaction to the fore, once again partially confirmed my thinking and the desire to buy the Euro with a view a good rebound but again I have not been able to find the right entry point.
Today's agenda features the research of IFO institute on business activity in Germany as well as Durable Goods orders in US.
Without any major surprise the possibility of the European currency losing some good part from the latest reaction is on the game with good chance.
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