The single European currency is holding marginally at 1,07 levels as the reaction which has come back into play appears to be limited in scope.
Yesterday's report on the service sector in the United States showed signs of a small contraction, which sent the US currency into small losses and international stock markets on a limited downward trajectory.
After yesterday's announcement we have lower bets on the next rate hike from the Fed's side as concerns that high interest rates are capable of hurting the path of the US economy are now growing.
At the same time President Christine Lagarde maintained the aggressive rhetoric as expected and despite the strong signs of easing inflationary pressures the European Central Bank seems willing to continue the cycle of increases in key interest rates perhaps and beyond the summer.
Today's disapointing announcement on Germany's Factory Orders brought back to the fore the fact that the European economy is fragile, something that despite the aggressive policy of the Ecb seems to act as a weight for the return of the European currency to a new strong upward cycle.
The announcement of Eurozone retail sales later in the day is expected to give new facts to this thought.
The economic agenda from the US economy's point of view is non-existent for today and interest from the other side of the Atlantic will be limited to the course of yields on US debt securities and the stock markets.
The general picture of the market remains relatively the same without significant differences, the European currency seems able to defend and react whenever it is under pressure, but without at the same time being able to develop a new strong upward momentum.
I maintain the basic strategy of the last few days to buy the European currency at local lows with the 1.0620-40 level to be the first target at the moment.