EUR/USD: Euro is looking for direction as remains trapped just above 1.0800 level

Vasilis Tsaprounis Independent Analyst

The single European currency for the third day in a row remains a narrow range of fluctuation just above the level at 1,08 as traders remain highly cautious and avoid taking big bets.

The market's picture broadly remains the same with the outlook for cut in key interest rates from Fed and ECB continue to monopolize interest and remains one of the main factor that will determine the course of the exchange rate.

Bets currently remains on three rate cuts by both Central Banks starting in June.

The course of the international stock markets continues to affect the pair with the euro finding good supports whenever there is some positive momentum in international stock prices.

My view that there are elevated risks to a possible sharp correction in stock prices that could further strengthen the US currency remains on the table.

Οn today's agendas the business climate and consumer confidence in the Eurozone stand out, while on the other side of the Atlantic, the agenda is poor.

After a temporary Euro's peak which manage to approach the 1,10 level two weeks ago the market retreated relatively soon and is once again trapped near the 1,08 levels.

I prefer to remain on a wait-and-see attitude, but perhaps a little increased is the chances of 1,08 collaps at some point.

Author

Vasilis Tsaprounis

Independent Analyst

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

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