EUR/USD: Euro remains under mild pressures just bellow 1.0400 level, as no surprises by Fed and ECB

The single European currency remains close to the 1.04 level, having a mild decline after the 2 stormy days with the meetings of the two main Central Banks and several macroeconomic news.

Fed and ECB confirmed the bets without any major surprises on the table, while presidents Jerome Powell and Christine Lagarde did not significantly change their rhetoric, avoiding clear messages about the future intentions of the two central banks.

So in general the broader market picture does not show major changes with the pattern of the previous days maintaining significant chances of continuing.

Geopolitical risks show signs of shrinking, but as long as the Ukrainian front remains open, the possibility of an ''accident'', even if it is smaller, remains on the table.

The interest rate gap remain in favor of the US currency as there no any surprise in the game. 

While the possibility of political instability in the European Union's two largest economies, Germany and France, along with the sluggish growth of the European economy, still remain high on the agenda.

On the other hand, the European currency has shown good reaction capabilities but cannot find the main catalyst that could lead it in the very near future to much higher on the threshold of  1,08 - 1,10  levels. 

Today's agenda is very interesting with critical macroeconomic data to be announced, in which retail sales in Germany which already announced in the morning and were bellow estimates, while later in the day the Personal Consumption Expenditures index in the United States stands out, which, as is known, is Fed's favorite indicator and functions as a harbinger of inflationary pressures.

Without a surprise and a catalyst, the European currency may struggle to return above the 1.05 level again, with the room for further losses remaining open.

The latest pattern of the last weeks most probably will remain as the base scenario, for the European currency perhaps its not yet time to move to significantly higher levels and on the other hand as the exchange rate approaches the critical level of 1/1 the euro may continue to react successfully.

So, the idea of buying Euro on dips remains my main thought.