EUR/USD: Euro resists but the 1.0900 still remains under challenge

The single European currency remains in defensive mode and so far manages to stay above the 1.09 level as the US hot inflation which  announced yesterday apart from a temporary small jump in the dollar has so far failed to create any upward momentum for the US  currency.

Yesterday's inflation data release confirms that the inflation battle is far from over and further removes the possibility of any change in monetary policy from  Fed before the summer.

Despite hot inflation figures in US  the European currency remains above the 1,09 level and proves that it will be difficult for US currency to find itself at much higher prices without the Euro remaining in the foreground with strong resistances and the ability to react very well.

Τoday's agenda is relatively poor and apart from industrial production in the Eurozone there is nothing else important.

International stock markets remain high but there are now growing voices warning that current levels are a bubble with the possibility of a very strong correction remain on the table.

A possible scenario of a strong correction in international stock prices is expected to directly affect the exchange rate with the US currency likely to find the opportunity to move to higher prices as it traditionally functions as a safe haven currency.

Τhe question is what will be the catalyst that will strengthen such a scenario as so far neither high interest rates nor the geopolitical situation have been able to limit the rise in prices on the international stock markets.

Today's poor agenda is likely to limit the range and we won't have any major surprises, however while I remain on hold I estimate that the possibility of 1.09 being challenged remains on the game.