EUR/USD: Euro trades below 1.0500 level, with the pattern of recent weeks remains on the table

The single European currency remains just below the threshold of the 1,05 level, awaiting critical macroeconomic figures from the Eurozone and the United States.

Yesterday day, without giving any surprises, clearly favored the European currency, which absorbed the losses of the previous days and returned to higher levels, but remaining at the familiar levels of recent weeks, with the trading pattern showing no significant differences.

President Trump's erratic behavior regarding the imposition of tariffs, the policies that central banks are expected to follow, and the possibility of political instability in the eurozone remain very high on investors agenda.

The interest rate differential remains clearly in favor of the US dollar and fears of persistent inflationary pressures in the United States increase the likelihood that this differential will remain on the table for a longer period of time.

As geopolitical concerns have decreased considerably and the possibility of political instability in the Eurozone is not great, the policy that the Fed will follow is attracting the most interest and for the time being remains the main drag in the European currency's effort to return to levels close to 1.07 - 1.08.

Today's agenda is quite interesting as a number of important macroeconomic data are being announced, with indicators for the course of the services and manufacturing sectors in the Eurozone and US standing out.

Without any major surprises, I do not see any significant differences in the overall market picture, with the pattern of recent weeks remaining the basic scenario for the near future.

No changes in my thoughts, as the positioning in favor of the European currency are now distant as we have moved far away from the recent lows, consequently I am leaning towards the idea of ​​buying the American currency in the event that there is a peak near the levels of 1,07.