EUR/USD: Dollar's mild rise remains in play with 1.0700 level be the next challenge

The single European currency's retreat continues and has now given up all the gains it managed to achieve two days earlier in the wake of the US consumers inflation announcement.

Earlier it had made lows just above the 1,0710 level and now may there are  room for further decline.

As has been mentioned several times everything revolves around interest rates with investors closely following statements by officials but also all macroeconomic data which may give new conclusions about the intentions of the two main Central Banks.

Last week's interest rate cut by the European Central Bank has widened the interest rate gap in favor of the US currency, which currently acts as the main catalyst for the US currency's soft momentum.

Τhe reduced inflationary pressures announced on Wednesday raised bets on the possibility of a faster interest rate cut by Fed which temporarily affected the dollar but as things look like this is shifting towards the end of the year with the result that the US currency remains in foreground.

On today's agenda we have the always interesting announcement of the University of Michigan survey on consumers sentiment in the United States as well as several statements by officials from the 2 Central Banks including the president Christina Lagarde.

The scenario of seeing the split of 1,07 with 1,06 being the next challenge has a good chance.

Ηowever, I'm not changing my strategy, I'm staying on hold and I'm waiting for low enough levels to consider buying the euro.