EUR/USD: Euro drops below 1,07, what's next?
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.
ฮคhe 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.ย ฮคhis development makes it difficult for the European currency to develop some momentum again.
ฮt 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.ย
ฮคoday's agenda is focused on the announcement on Consumer confidence in the European and US economy.ย 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,ย 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.
