EUR/USD: Euro remains steady near 1.0300 level with bets on Euro reactions still in play

The single European currency remains stable near 1,03 levels in a balanced environment after yesterday's new mild losses.

The concerns about the ability of the European currency to show something better than the usual reactions remains on the table with the main catalysts that have influenced the European currency in recent months remaining high on the agenda.

Geopolitical risks, despite the latest developments with the expected agreement between Israel and Hamas, remain high with the Ukrainian front showing no signs of de-escalation. 

At the same time, the interest rate differential that remains clearly in favor of the US dollar, the course of the European economy that raises concerns, and the possible political instability in Germany certainly do not help the prospects of the European currency and its effort to develop a sustained upward momentum.

However, the already low prices at which the exchange rate is located, with the 1/1 level not too far away, makes investors hesitant to remain with large bets in favor of the US dollar, with the reactions of the European currency proving to be a good bet, confirming my thoughts as they have been reflected in previous articles.

Today's agenda included Germany's consumer price inflation figures, which showed no surprises, while later in the day, on the other side of the Atlantic, retail sales and weekly jobless claims stand out.

As I mentioned above, my thoughts on betting in favor of the European currency's reactions turned out to be a  good idea, so i prefer to keep the same thoughts, hoping to reposition in favor of the euro on a new dip near the recent lows.