EUR/USD: Euro on hold at 1.0700 level in a calm Monday with a poor agenda
The single European currency is trading close to the 1,07 level at the opening of the new week in a limited range of variation trying to limit the losses of the previous week.
The dust from last week's euro election developments has not yet settled with the consequence that the European currency is under question and the scenario for further losses remains on the table.
At the same time, despite the limited inflationary pressures announced in the US economy, bets on a rate cut by the Fed are gathering towards the end of the year, which maintains the interest rate gap in favor of the US currency.
Apart from some very good reactions there doesn't seem to be any catalyst on the table at the moment which will act as a trigger to change the momentum and the European currency approaches level of 1,10 again.
Τoday in particular does not include any major macroeconomic data and it could be a good opportunity to see a stabilization of the exchange rate around 1,07 level with the European currency avoiding further sharp losses.
The only standout on today's agenda is President Lagarde's speech but it would be a surprise if she brought something new to the table and changed the rhetoric after the last Ecb meeting earlier this month.
Τhere is no change in my thinking, I remain on hold and wait for levels near 1,06 to consider the possibility of buying the euro.
Author
Vasilis Tsaprounis
Independent Analyst
Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.
