EUR/USD: Mild signs of fatigue for the Euro, falling to 1.0900 level

The single European currency is under mild decline in the early hours of Wednesday morning, having returned slightly below the level of 1,09 in an environment where developments are stormy.

The ''dance of tariffs'' set by President Donald Trump, the significant developments at the geopolitical level with a possible temporary ceasefire on the Ukrainian front, and the significant changes on the Old Continent with giant financial packages planned for defense and infrastructure have attracted the interest of investors and will determine the course of the exchange rate in the near future.

President Trump continues to be unpredictable, demonstrating his eccentric approach to policy issues, which confirms that his presidency will not be ''boring'' at all.

Recent developments with trade war have created significant concern in the investment community, which is reflected in the significant losses that the American stock markets have suffered recently, with the S&P barometer index approaching the level of 5,500 points yesterday, having already lost almost 10% from its high prices.

The US currency did not benefit at all from this development as risk aversion this time did not drive capitals to US dollar, which traditionally functions as a safe haven currency.

Today's agenda is very critical with the consumers inflation index in US standing out.

As some bets have been placed on the prospects of further reductions in key interest rates by Fed, today's announcement could act as a catalyst for several bets to change and, if a possible increase in inflationary pressures is confirmed, it could act as a trigger for the US currency to return to the spotlight.

I have no significant change in my thinking,  I remain quite concerned about the sharp upward trend of the European currency, maintaining the doubts about the possibility of this rise continuing for long.