EUR/USD: Hot news today from US will be a game changer?

The single European currency is held steady above the 1,09 level in view of very important news later in the day from the United States.

The euro after a relatively calm day yesterday where the range as i expected was quite limited has returned above the 1,09 level after a temporary retreat to the 1,0855.

During yesterday there was no major surprise , the general picture of the market remained the same and the level of 1,0920-30 proved again a difficult level to break on the upside and the European currency to continue its upward momentum.

The US currency found some support from the temporary return of the international stock markets to negative territory which reinforced the need to buy dollars as a safe haven currency but it was extremely short-lived.

While the US government debt yields remains to lower levels and are not in position to support the US dollar.

In such an environment where confusion about the path of the parity remains, today's announcements are awaited with extreme interest and for several analysts some major surprises are likely to change the game.

As the federal central bank of the USA has proceeded with interest rate increases in the past months, the announcement on the course of growth in the American economy is expected to show the extent of the contraction and the potential risks for the US economy to enter a recessionary environment.

While at the same time other macroeconomic data of significant interest are expected to affect in turn the exchange rate with more important the durable goods orders and personal consumption prices.

In general, the European currency has recently been significantly supported by European's Central Bank hawkisk rhetoric.

On the other hand, the tones have been softened by the Fed and some data which will renew again the fears of increased inflation pressures may force the Central Bank back into more agresive rhetoric and that would really a game changer.

In such an environment and in view of important announcements maintaining positions in favor of the European currency involves significant risks and for this reason I refuse to maintain positions in favor of the euro at such levels , on the contrary strategy to buy dollars on peaks so far have not let me down.