EUR/USD: Nothing new on the table, latest FOMC Minutes could give some direction
The exchange rate remains in a narrow trading range near the 1,0850 levels for one more day as investors remain extremely wary of taking big bets.
After the European currency peaked near the 1,09 levels a week earlier the bullish momentum has been challenged but with no sign of a change in trend for now.
And yesterday did not provide any excitement with the pair remaining in a fluctuation range of only 30 points as the poor agenda and the statements of Fed officials which brought nothing new to the table couldn't fuel bigger volatility.
Τhe overall market's picture shows no major differences with bets on the prospects for a rates cut by Ecb and Fed remain unchanged in recent days.
Today's agenda is clearly more interesting with the speech of president Christine Lagarde and the announcement of the Minutes from the last Fed's meeting standing out.
The pair remain trapped in a narrow range of variation in the last days and as I mentioned in previous articles the continuation of the upward momentum and the easy breakdown of the 1,10 level is not an easy task for the European currency.
While on the other hand the gap in interest rates in favor of the US currency remains with the possibility that it will widen on June which could once again give room for the US dollar to return to higher prices.
There is no change in my thoughts expecting levels above 1,10 to buy the US dollar while in a return to the lows of 1,06 I would consider the possibility of long positions in favor of the euro.
Author
Vasilis Tsaprounis
Independent Analyst
Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.
