EUR/USD: The pair remains calm near 1,1700 level without bets ahead of US inflation
|The single European currency remains below the level of 1,17 for the second consecutive day in a weak trading range as traders avoid big bets ahead of the announcement on the path of consumer inflation in the United States.
Since the European currency climbed to a high of 1.1830 two weeks earlier, signs of fatigue remain on the table, with consolidation behavior being the main feature of recent days.
This development continues to confirm my thoughts as expressed in previous articles as I had given a good chance to such a scenario while at the same time I tried buying the US currency at the level of 1.18, which yielded some small profits.
The issue of trade tariffs, interest rate cuts by the two main Central Banks, and the geopolitical environment remain high on investors' agendas.
The interest rates gap continues to favor the US currency, which is most likely to remain for the next few months, perhaps with some minor variations, as any big surprises are unlikely to appear on the table.
The ongoing tension between President Donald Trump and the European Union over trade tariffs remains a key concern and a significant risk for the markets, and a very bad development on this issue is likely to negatively affect the European currency more than the US dollar.
After the consolidation behavior of the last few days, the pair is looking for the trigger for the next move and the macroeconomic data of the next few days will likely provide such an opportunity.
After attempting to position myself in favor of the US dollar at the 1.18 level, I preferred to lock in some short-term and small profit and remain in a wait-and-see position as the environment remains extremely foggy and the data changes from moment to moment.
I would prefer some new highs, perhaps close to 1,20 level, for the possibility of attempting to once again position in favor of the American currency, as I estimate that the upward momentum of the European currency has lost a significant part of its dynamic and much higher levels will start to create a headache to the European Central Bank.
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