Vasilis Tsaprounis
Independent Analyst
Nothing seems to have changed in the pair, trading in a limited range remains. The exchange rate behavior as we mentioned yesterday did not surprised and moved below to 1.06 level.
Although temporarily did some gains, the single European currency exceeded temporarily the 1,06, but failed to maintain these levels and returned to lower prices.
It is clear that the pair is looking for a direction but expects a significant reason which will give the signal.
Maybe this will come from the European Central Bank President statements, Christine Lagarde, who is attending the Central Banking Conference in Portugal from today until tomorrow, may we have important developments in a central banks field.
Although the question remains, what is it that President Lagarde could say and give a significant boost to the euro beyond a temporary.
Euro buyers would be happy if ECB rhetoric becomes more aggressive on future interest rate hikes.
This would reduce the gap created between Fed and ECB, as clearly the Fed rhetoric so far is more aggressive.
In view of the above, we maintain the neutral position of the last days, expecting a limited range trading for the pair in anticipation of Lagarde and Wednesday's conference.
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