Vasilis Tsaprounis
Independent Analyst
The common European currency is under pressure again and is already below the 0.9800 level approaching 0,9750 . In the wake of the decision of the central bank of the US on Wednesday night and the aggressive rhetoric maintained by the Fed the euro came under pressure approaching the level of 0.9800 but relatively soon recovered returning to 0,9900 again.
In fact, the reaction behavior was repeated twice as in the new pressure received by the pair, the return to the level of 0,9900 was achieved , confirming once again the pattern of reactions of the European currency after dips as we have repeatedly mentioned in our previous reports.
Of course, as expected and we had mentioned already , after a prolonged period where the market is digesting some levels, the possibility of them changing and to see new lows and new dips of the exchange rate was increased.
Bearish momentum remains for the European currency as rising tension on the Ukraine front and macroeconomic data coming out of the Eurozone continue to weigh the sentiment and the euro.
The stock markets continue to be under pressure on the first day of the referendum on the accession of Donbas republics to the Russian Federation and all the side effects that such a development has for international stability.
During the day we also have the speech of Fed's president Jerome Powell who in addition to confirming the rhetoric of the aggressive policy that the Fed is going to follow, it would be difficult to surprise the markets.
The pattern that the pair following seems to remain , with the pair making new lows in the wake of the Fed decision followed by some satisfactory reaction from the Euro.
We are waiting with interest if today we will have the same pattern and there will be a new reaction of the European currency after the sinking to the levels of 0,9750.
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