EUR/USD: Euro remains stable near 1,1650 with sell on peaks strategy still in play
The single European currency remains near 1.1650 level in a narrow trading range on the last day of the week as investors try to assess President Donald Trump's policy on imposing tariffs, which is extremely difficult with the landscape remaining extremely cloudy.
The dust from the disappointing US jobs data last Friday has not yet settled, having significantly affected bets on the next Fed meeting, where the probability of the central bank cutting interest rates is now quite significant and hovers around 50%.
President Donald Trump's enigmatic policies and controversial personality remain a key risk for the markets, with developments moving quickly and often changing from moment to moment.
However, international stock markets remain at high levels with the S&P barometer index, although it corrected a little lower, remaining close to its historical highs.
As it seems there is still a lot of liquidity, most investors are ignoring the uncertainty of the days and remain positioned in the stock markets.
In my opinion, I would maintain a more cautious stance as the small corrections we have observed recently may not be enough and a larger correction remains a possibility for the near future.
Today's agenda is relatively light without anything important and with the week coming to a close, the likelihood of seeing any significant fluctuations is not high.
I prefer to remain in a wait-and-see attitude, maintaining the idea of buying the US currency at some new peak, around to 1,1850 - 1,1900 levels.
Author
Vasilis Tsaprounis
Independent Analyst
Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.
