EUR/USD: Investors remain cautious before Thanksgiving in the US

The single European currency is holding close to 1.09 levels in a very mild corrections environment after yesterday's fresh highs at 1.0965.

As quite expected the single European currency has already shown signs of fatigue and yesterday's announcement of the Minutes from the last Fed meeting failed to give any reason for the 1,10 level to be put under chalenge.

However, the messages that remain on the table are that the interest rate hike cycle may be closed for the time being, but a possible change in the data and some strong return to inflationary pressures is capable of changing this rhetoric.

On the same wavelength were the statements of President Lagarde, who noted that she expects the battle with inflation to last and it is possible that in the coming months we will again see some relative increase in inflationary pressures.

These statements, although they can be characterized as aggressive, were not able to re-fuel any upward momentum for the European currency.

The better pace of the US economy continues to be one of the main reasons that the European currency is struggling to maintain the strong upward momentum of the previous week.

But this does not mean that after the last accumulation near the levels of 1,09 the temporary breakdown of 1,10 and the execution of large stop loss orders are not possible.

On today's agenda stand out durable goods orders in the United States as well as weekly jobless claims which although traditionally announced on every Thursday due to tomorrow's holiday have been moved a day earlier.

Without any major surprises I would consider it difficult for investors to take a big bet ahead  US markets holiday tomorrow and the exchange rate to remain in a limited range near the 1,09 levels is a good-likelihood scenario.