Vasilis Tsaprounis
Independent Analyst
The single European currency is trading slightly below the 1,14 level in the early hours of Wednesday morning in a narrow trading range as investors have avoided big bets in recent days.
After the strong signs of fatigue shown by the European currency after climbing to a high of 1.1575 at the beginning of last week, the American currency has limited its losses, a very good correction has appeared on the table but it cannot be considered that the American dollar has returned to the forefront.
The data that is high on the agenda and has spooked investors remains on the table, as President Donald Trump, although he has limited surprises in recent days, remains a significant risk.
President Trump's controversial policy, despite the milder tones of recent days, continues to cause concern and currently remains the most important thorn in American currency's effort to return to significantly higher prices.
The rhetoric of de-escalation of the trade war between the United States and China is on going , have a positive effect on the course of stock markets and has restored some calm , but investors remain cautious about the prospect of large bets in favor of the American currency.
Geopolitical developments continue to monopolize interest, are very high on investor's agenda and continue to overshadow macroeconomic data.
The landscape remains foggy, Trump's credibility remains a question mark, and the lull of recent days could be temporary.
Today's agenda, while not indifferent, does not include any high-profile news and the only thing that stands out is consumer confidence in the eurozone and some preliminary data on the labor sector in the United States.
After the signs of fatigue last week, the exchange rate shows a willingness to make a larger correction, with the possibility of the 1,13 level breaking downwards remaining on the table.
However, I remain on hold as the environment of high uncertainty and the possibility of surprises returning are still in play.
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