Vasilis Tsaprounis
Independent Analyst
Τhe single European currency is trying to react and move away from the levels at 1,0750 where it noted lows a little earlier and specifically at 1,0755 in an environment where confusion is the main feature as no any strong direction is seen at the moment since all investors maintain stand by ahead of the crucial announcement tomorrow at noon on the US labor sector.
Yesterday did not give any surprise, the fluctuation range as was most expected remained in a narrow range with the mild downward momentum of the European currency remaining on the agenda.
Yesterday's preliminary US jobs data disappointed investors but can not overshadow tomorrow's non-farm payrolls announcement which carries far more weight and is capable for game changer.
In general the picture remains the same and at the moment there is strongly on the table the prospect that the European central bank will proceed to cut interest rates much earlier than the corresponding Fed.
In any case, it is too early for clear conclusions as many data mainly on the course of inflation must be followed before the final decisions of presidents Lagarde and Jerome Powell.
On today's agenda stands out the announcement on the path of the European economy, no major surprises are expected, but the fear of recession has not yet disappeared, something that if it rises to the agenda, the European currency could be again under challenge.
The scenario of limited fluctuation without strong direction gathers the greatest probability for today as investors obviously if there is no surprise they will prefer to take a wait-and-see attitude ahead of tomorrow's US jobs data.
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