EUR/USD: Euro on fire as Yen intervention challenges Dollar

The single European currency touched the level of 1.19 at the opening of the Asian zone as the development in the dollar exchange rate with the Japanese yen and the large losses of the American currency have put the dollar in question.

The exchange rate appears to be maintaining the upward momentum of the previous week, approaching the highest levels of recent months, with the critical level of 1,20 now quite close and constituting the next challenge.

The enigmatic policies of President Donald Trump with his controversial personality remain the most important reason for concern for the markets, having brought the American currency to the corner with the upcoming Fed meeting on Wednesday being high on investors agenda.

The geopolitical storm of recent weeks with President Trump's ambitions for Greenland and the Iran front, which at any time could bring a new cycle of instability to the geopolitical environment, has not subsided and developments could be unpredictable and create new shocks to the markets.

In such an environment, the US dollar could regain its title as a safe haven currency, but this has not happened so far.

For this reason, I remain cautious about the European currency ability to maintain the same upward momentum and for this week, with the crucial Fed meeting on Wednesday being a critical catalyst for the next steps.

Today's agenda is relatively poor, with durable goods orders in the United States being the only thing that stands out.

I will not change my thoughts as expressed in previous articles and will try buying the US currency at the 1,20 threshold.