EUR/USD: Euro retreats from 1.1090 peak, in a high volatility pattern

The single European currency has returned to the spotlight, maintaining its daily positive sign despite the significant correction it has undergone since reaching a peak of 1.1090.

As I mentioned in yesterday's article, the likelihood that the days ahead will be characterized by high volatility in both directions is quite high, as the latest developments with President Donald Trump's decisions have shocked the markets and confusion is the only certainty.

President Trump's decisions have confirmed his reputation as a fairly unpredictable man, and the '' tariffs dance '' that has begun is expected to remain high on the agenda for a long time, significantly affecting the global economy and international financial markets.

Although several trading partners have expressed their willingness to begin negotiations,  perhaps the greater concern comes from the Chinese side, a war of prestige and power has begun and the concern about the implications it may have is high.

The majority of analysts are unable to interpret with certainty the final effects of the trade war, but what is certain is that the effects on the global economy and growth rates will be intense.

The next meetings of the Fed and the ECB are expected to be very high on the investors' agenda very soon as the estimates are controversial with the bets changing day by day.

So far the US dollar continues to enjoy higher interest rates against the euro and it will be very difficult to reverse this in the near future.

On today's agenda, the announcements from the Minutes of the last Fed meeting stand out, but it is certain that political developments and international stock markets will remain the focus of investors.

I see no significant reason to change my thoughts and will maintain the same strategy, trying to take advantage of the high volatility by buying the US dollar at some sharp peak near the levels of 1,11 - 1.12.