EUR/USD: Euro slips below 1.0700 level as Dollar continues to shine

The single European currency falls marginally below the level of 1.07 at the opening of the new week as although the dust from the triumph of Donald Trump has settled the developments on the European continent with the political crisis looming in Germany negatively affects the euro.

The reaction of the European currency last Thursday seems to have been only temporary without finding further supports to continue the rise.

The political crisis in Germany could lead to uncharted waters further weighing on the European currency as the German economy remains the steam engine of the European economy.

The prospect of rates cut is expected to be back high on the agenda after the temporary hiatus from the US presidential election.

In the aftermath of Fed meeting last Thursday,  Chairman Jerome Powell did not fuel any new bets on Central Bank's next moves.

For now remains on the table a good possibility of another 25 basis points reduction in the key interest rates on December. 

Αt the same time the yields of the US government debt securities remain at high levels favoring in turn the US currency but I maintain doubts about the maintenance of the yields at current high levels expecting some good correction soon.

Such a development could limit the US dollar's momentum and support a good correction for the European currency.

Τoday's agenda is completely non-existent without any macroeconomic news or statements from officials on both sides of the Atlantic.

The very poor agenda could support a limited trading range scenario.

I remain on hold, but with thoughts of buying the European currency near the levels of 1,06 as I estimate that there will soon be a good correction in favor of the euro.