EUR/USD: Τhe Euro temporarily stabilizes
|The single European currency shows signs of stabilization after the losses it suffered in the last three days as it has managed to react from the temporary low of 1.0220 to 1.0280.
Tuesday's losses came to a balance as I had mentioned in my article yesterday as without important macroeconomics news it would be difficult for these losses to take a large extent.
The break on US currency's recent gains was also supported by statements from Fed's officials that they expect the pace of rate hikes to slowdown.
But on the same line and European officials in turn expect the European Central Bank to be more restrained about the amount of increases in the next meetings .
The policy to be followed by the two main central banks regarding the path of interest rates remains the main catalyst currently affecting the exchange rate .
The rates gap currently continues to be in favor of the dollar something that its difficult to allows the European currency to return to the strong upward momentum of the previous week.
At the same time, however, the European currency also shows signs of reactions and every time it finds itself in local new dips , the behavior of the reactions comes back to the fore, something that characterized the pair in its downward course in recent months.
In today's agenda stands out the announcement on the course of Consumer confidence in the eurozone and some statements from Fed's officials.
Without any major surprises i would expect a limited range trading without extreme moves with the possibility of the European currency coming again under limited pressures.
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