EUR/USD: Euro remains calm near 1.1200 level on a poor agenda's day

The single European currency has started the week in a calm trading tone, maintaining the levels of the previous days near the level of 1.12, with investors remaining cautious and avoiding big bets.

Friday's announcement of the University of Michigan's survey on consumer confidence in the United States disappointed, causing the US dollar to come under temporary pressure.

The previous week was clearly in favor of the US dollar, with the European currency coming under pressure and sliding almost 200 basis points, approaching the critical level of 1.10.

The dollar's shine was mainly enhanced by developments regarding the trade war and the interim agreement between the United States and China, which brought great optimism to the markets, simultaneously strengthening both the US dollar and international stock markets.

But not forget that  President Donald Trump's controversial personality and his ability to surprise and change the facts from day to day have created significant uncertainty among investors, and although the change in policy has brought some stability, favoring financial markets and the US dollar, the clouds have not completely cleared.

Moreover, US government debt securities remain at high levels that could not be fully justified by the current levels of Fed interest rates.

Τhe 10-year bonds moving above the 4.50 level.  Under normal circumstances, these high yields would have been a significant advantage for the US dollar and should have already led it to higher prices, but this is not happening at the moment and confirms the environment of confusion and great concern among investors.

The bigger picture of the market remains the same with the exchange rate not having any strong direction at the moment, the European currency since it climbed to its high of 1.1575 has again come under mild doubt but on the other hand the American currency after the very good correction is struggling to continue to shine.

i remain in the same thoughts, maintaining some good  possibility in the scenario that the range of variation will remain between the levels 1.11 and 1.16 for the near future, of course with some good deviations as we observed on last Monday , but with the US dollar slowly showing some slight advantage.