EUR/USD: The pair remains heavy near 1.1400 with no direction and big bets
|The single European currency remains close to 1.14 level for almost the 7th consecutive day with investors remaining cautious about taking any big bets as the landscape remains extremely cloudy with commercial "Bra de fer" remaining high on the agenda.
The long weekend due to Whit Monday in Europe supported by thin agenda and low trading volume.
Investors have focused their attention on developments regarding the trade war between the United States and China, with significant expectations and increased optimism that an agreement will soon be reached, which has supported international stock prices, creating a sense of calm in the markets.
The yields on US government debt securities, although not at their recent highs, remain at high prices, maintaining some concerns, albeit limited.
The course of the exchange rate over the last 10 weeks has largely confirmed the thoughts expressed in previous articles, as the scenario that the exchange rate remains in a wider range of fluctuation between levels 1,10 and 1,16 remains in play.
Today's agenda is relatively uneventful and the only thing that stands out is a survey for Investors Confidence in the eurozone, with investors looking forward the tomorrow, when there will be critical economic data on inflation in the United States and possible new developments regarding an agreement between the United States and China.
As the environment remains foggy, I prefer to remain on the sidelines, perhaps giving some increased probability to the idea of buying the European currency in a sharp dip, as despite the much better interest rates, the American currency has created great concerns latest.
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