EUR/USD: Euro remains firmly near 1.1800 on NFP day ahead of a long weekend due to US Independence Day

The single European currency is held close to the levels of 1,18 as already yesterday the feelings of fatigue have appeared on the table with investors remaining extremely cautious in taking further big bets especially in view of today's data on new jobs in the United States.

The preliminary data on the employment sector in the United States that were announced yesterday created intense concern as there was an unexpected drop, with the result that the data that will be announced later in the day will have increased weight as if they disappoint as well they will likely put the American currency in further trouble.

The general environment of questioning the American currency remains on the table with  the latest disagreements between President Donald Trump and the President of the Fed have increased the risks.

At the same time, with the exception of the Ukrainian front, which continues to be active, the broader geopolitical environment has limited the risks and  has removed from the table the need for purchases in the US currency, which traditionally functioned as a safe haven currency, although recently there has been a strong observation that this characteristic has lost its luster.

Monetary policy continues to be in favor of the US currency as the interest rate differential remains clearly in favor of the dollar, but something that has not managed to act as a bulwark against the decline of the US currency.

Despite the ongoing negative sentiment weighing on the US dollar, I will maintain a temporary position in favor of the US currency as my assessment has not changed that there will be further fatigue in the upward trend of the European currency and the exchange rate will digest some levels before triggering targets close to 1.20.