EUR/USD: Euro drops below 1,07, what's next?

Vasilis Tsaprounis Independent Analyst

The single European currency continues to be under mild pressures and has already lost the level of 1,07 falling so far to 1,0673.

Monday as we expected was an extremely quiet day as due to the holiday in the United States trading was limited to a very tight range with the US dollar gaining slightly towards the end of the day.

The mild dynamic which characterizes the US currency lately continues to be in the foreground and what the dollar did not achieve yesterday it achieved today in the early hours at the opening of the European markets.

The overall market picture remains the same as investors are swayed by the bets that still remain on the table that the US Federal Reserve has not completed its rate hike cycle.

Τhe European central bank's next moves are fully discounted as beyond two hikes in the next two meetings there is nothing else on the table for now. Τhis development makes it difficult for the European currency to develop some momentum again.

Αt the same time, however, as the rhetoric of the officials of the European Central Bank maintains an aggressive tone, I estimate, as I have mentioned in previous articles, that the pressures on the European currency will remain mild and we will not have a price collapse.

Τoday's agenda is focused on the announcement on Consumer confidence in the European and US economy. While let's not forget that Towards the end of the week we have the announcement of data on new jobs in the United States which is expected to increase volatility in the markets.

I will maintain the same reasoning on market's behavior, I avoid being in favor of the US currency when the pair makes new local lows and correspondingly I am in favor of buying the European currency whenever it makes new dips with the aim of short corrections.

Author

Vasilis Tsaprounis

Independent Analyst

Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.