EUR/USD: Euro targeting 1.1800 level, with Middle East remaining in focus

The single European currency maintains a  mild positive momentum, trying to approach the 1.18 level, which constitutes a good resistance despite the new possible escalation on the Middle East front as President Trump in his recent statements indicates that a final agreement between the United States and Iran is still far away.

For about 5 weeks now, the European currency has remained below the 1.18 level, having made at least three attempts to break through this level upwards.

The US dollar, except  the early days of the military conflict between Iran, Israel and the United States, has not confirmed its reputation as a safe haven currency as despite all the geopolitical concerns it is under pressure.

One possible explanation behind this behavior is the personality of US President Donald Trump, as his controversial decisions and policies, as well as the instability he has shown so far, create an environment of confusion for investors, with many turning to other currencies.

US bond yields remain high, which could support the US currency, but that has not happened so far.

Macroeconomic data continues to remain in the shadow of geopolitical developments, most notably Friday's  announcement  on new jobs in  US, which, without impressing, were announced better than estimates, but were unable to have a positive impact on the US dollar.

With today's agenda being relatively indifferent, interest is focused, as always, on geopolitical developments but also on tomorrow's agenda, where the consumer price inflation index in the United States will be announced, which may will give new fuel to bets on the upcoming Fed decisions.

I remain in same  thoughts as they were expressed in the previous article, maintaining a wait-and-see attitude and expecting levels close to 1.20 in order to evaluate the possibility of buying the US currency.