EUR/USD: US Dollar remains on the fore with the 1.0700 level a breath before collapse
|The US currency continues its mild upward momentum and is one breath away from testing the critical level of 1,07.
Yesterday although it was a holiday in most European markets due to the second day of Catholic Easter the exchange rate surprised and although in the first half of the day the market was extremely quiet during trading hours in the US markets the US currency developed a positive momentum as received a support by the announcement of the manufacturing sector in US where it was announced increased exceeding the estimates.
Another confirmation of the resilience of the American economy, keeping on the table the aggressive rhetoric of President Powell, who, although he has opened the way for reductions in key interest rates by the Fed, also reminds us that there is no great rush.
Bets remain steady for now and are focused on the possibility of the first cut in key interest rates by Fed and ECB in June.
Today's agenda is quite rich with the consumer price index in Germany but also several statements from Fed's officials stand out.
Αt the same time, I remind that we are going through a week where we have a lot of data on the labor sector of the United States, starting today with some preliminary data, culminating the Friday with the announcement of new jobs and the unemployment rate.
The possibility of maintaining the positive sentiment in favor of the US currency remains good, especially if the next announcements as well as the statements by Fed officials do not surprise negatively.
As the European currency is under question for the fourth week in a row, my thinking about the possibility of buying the Euro on a fresh strong dips returns, as I feel that reactionary behaviors will come back to the table with levels near 1,06 being among the targets for now.
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