EUR/USD: EUR trades above 1.0700 on a calm day with all eyes on Wednesday Fed's meeting
The single European currency is holding above 1,07 levels in a narrow range as last week's economic data helped the European currency move well away from 1,06 levels, but for now there are enough weights on the table that prevent the European currency from developing a sustained upward momentum.
The rate of growth of US economy announced last Thursday disappointed but as inflation persists and the interest rate differential remains clearly in favor of the American currency, apart from some very good reactions the European currency seems to struggle to return to sufficiently higher prices and approach the level of 1,10.
This pattern has quite a chance to remain on the table in the short term as investors do not seem willing to take big bets for the time being for the exchange rate to move much away from current levels.
Today's agenda features consumer confidence and economic sentiment in the Eurozone along with inflation in the German economy while on the other side of the atlantic there is nothing major.
Without any positive surprise in European news the European currency may struggle to move higher with the scenario the 1,07 level be under challenge once again remain in play.
Author
Vasilis Tsaprounis
Independent Analyst
Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.
