EUR/USD: Euro on slight pressures mode below 1,1800, with room for further losses

The single European currency is trading slightly below 1.18 level in the early hours of Tuesday in a narrow trading range as the latest developments on the trade tariff issue and President Donald Trump's response to the Supreme Court ruling have so far  a limited impact on markets.

The controlled pressures on stock markets yesterday brought the US currency back to the forefront.

At the same time, the main question that dominates  analysts is whether the new trade policy will have any different effect on US inflation, as the landscape on this issue remains cloudy with the chances remaining in favor of maintaining interest rates in the next two to three Fed meetings. 

At the same time, from the European Central Bank's side, the messages reinforce the possibility of maintaining interest rates at current levels for the near future.

The issue of key interest rates on both sides of the Atlantic remains the main lever influencing the exchange rate, with investors closely monitoring key macroeconomic figures as well as critical statements by Fed and ECB officials.

Today's agenda is extremely poor on the Old Continent but much more interesting on the other side of the Atlantic with some preliminary data on the labor sector and several statements by Fed officials standing out.

The market's behavior in recent days has fully confirmed  my decision to position myself in favor of the US currency at 1.20 level with the aim of some good correction, which has largely taken place.

As the market now operates in a consolidation environment and geopolitical risks have increased significantly with the possibility of a heated episode between Iran and the United States remaining at the top of the agenda, I would prefer to lock - in some small profits and stay on hold .

I maintain my thoughts and the same doubts regarding the ability of the European currency to move to prices much higher than the 1.20 level and remain above them.