EUR/USD: Euro returns on 1.0900 threshold in a calm agenda

 The single European currency is trading between the 1.0850 - 1.09 levels in the early trading hours of the new week on a very calm agenda.

After the tiredness of the previous two days of trading, the European currency is making a new attempt to secure the level of 1,09 as the positive climate in the international stock markets has limited the needs to buy dollars while at the same time the US goverment bonds yields are under slight pressure.

Friday did not provide any particular excitement as in an poor agenda the range of variation was limited to only 40 basis points with the European currency maintaining signs of fatigue but with no prospect of a change the trend for now.

Investors remain focused on macroeconomic announcements and in particular inflation data for the two main economies as well as statements by officials who are likely to give new signals about the prospects for interest rates cuts.

Bets broadly remain the same on the prospect of a key rates cut by the ECB to gather in June, while the odds of the same move by the Fed are quite high for September.

I remain skeptical as to whether this momentum can be sustained for long and whether in the near future the Euro can easily break the 1,10 level and stay above it as the interest rate differential in favor of the US currency remains and the prospect of enlargement in June is still on the table.

On today's agenda as there is no announcement of macroeconomic news the only thing that stands out are statements from several Fed officials.

I prefer to stay on hold at these levels trying to detect levels to buy the US dollar. Possibly in a sharp move well above 1,10 level.