EUR/USD: Mild losses for the US currency on Memorial Day

Vasilis Tsaprounis Independent Analyst

The single European currency has started the week with a mild positive momentum and was trading a little earlier above the 1.14 level where faced the first signs of fatigue.

President Trump's enigmatic personality and controversial decisions remain high on investors' agenda, affecting the US dollar.

Just when there was going to be a relative calm between the United States and China on the tariffs front, the American president '' struck '' again, this time opening a front with the European Union.

International stock markets closed with some losses on a weekly basis, the first time after several weeks of gains, possibly signaling the end of the recent rally in the wake of the restoration of calm in the markets after President Donald Trump's stormy decisions a few weeks earlier and the very brief change in his policy.

US government debt securities remain one of the major thorny issues for the US currency as confidence in President Trump's decisions has been limited, which reflected in the yields on debt securities which remain at high levels, keeping concerns about the future high.

Today's agenda is extremely poor due to Memorial Day in the United States, and the only thing that stands out is a speech by President Christine Lagarde.

Although the European currency started the week quite dynamically, easily handling the 1.14 level, I would not give much chance for today for this rally to continue and the 1.15 level to be challenged soon, mainly due to the poor agenda and the reluctance of investors to take large bets.

No any changes in my thoughts, maintaining some good possibility in the scenario that the range of variation will remain between the levels 1.11 and 1.16 for the near future.

Author

Vasilis Tsaprounis

Independent Analyst

Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.

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