EUR/USD: Euro on consolidation mode above 1.1300 as no fresh big bets in play

The single European currency remains firmly above the 1.13 level, having fallen significantly from the highs of 1.1575 at the beginning of the week, showing strong signs of fatigue.

Nevertheless, President Trump's controversial policy, despite the milder tones of recent days, continues to cause concern and currently remains the most important thorn in  American currency's effort to return to significantly higher prices.

The rhetoric of de-escalation of the trade war between the United States and China  had a very positive effect on the course of international stock markets and has restored some calm , but investors remain cautious about the prospect of large bets in favor of the American currency.

Geopolitical developments continue to monopolize the agenda, overshadowing macroeconomic data.

The developments on the Ukrainian front remain a front of concern and despite the optimistic messages after the election of President Trump, the obstacles to a peaceful settlement of the case remain great.

The easing of tension between President Trump and Fed Chairman Jerome Powell has also provided some relief to the US currency, with US Treasury debt showing signs of stabilizing after the significant concerns in recent days.

Today's agenda is generally quite poor, with the only thing that stands out being the University of Michigan's survey on consumer confidence in the United States.

The landscape remains extremely foggy, Trump's credibility remains a question mark, and the lull of recent days could be temporary.

The exchange rate has already correct over 250 basis points from the recent highs and there is likely room for further correction,  but I would prefer to remain on hold.