EUR/USD: Euro remains in question ahead of EU GDP

Vasilis Tsaprounis Independent Analyst

The single European currency remains below at mid-1,08 levels in a soft trading environment pending announcements on the path of development of the Eurozone economy.

The overall market picture shows significant signs of change as the European currency has now lost its upward momentum and entered a soft corrections environment.

As i reported yesterday we are having an extremely important week with stormy news from all the main economies , with growth rates , consumer confidence indicators , etc and culminating the interest rate hike decisions from Fed and Ecb to stands out.

Yesterday's market behavior justified once again my thought that the European currency will find it very difficult to secure the 1,09 levels and stay above them in view of this week's critical news.

US dollar purchase on peaks proved once again a not bad idea as today the European currency shows again signs of mild corrections which may take more extent.

In any case, in view of the important announcements, but also tomorrow's Fed decision , market movements are expected to be more restrained and not break significant levels.

A likely major disappointment in the announcement of European economy growth is logical to put further pressure on the European currency and on the other a positive surprise It will greatly reduce the pressures on it.

I remind that lately the European common currency has discounted several positive data for it, such as the significant de-escalation in natural gas prices that have now moved the energy crisis away from the euro zone while the Ecb's hawkish rytoric remain in play too long.

It may now be more difficult for the common currency to find new data that will be able to feed back a renewed bullish momentum.

In general my basic strategy of buying the US currency at the peaks seems to have performed extremely faithfully lately and I don't see any significant reason to vary it.

Author

Vasilis Tsaprounis

Independent Analyst

Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.