EUR/USD: Pressures have returned on the Euro, 1.0500 level is already under challenge

Vasilis Tsaprounis Independent Analyst

The single European currency is again under pressure, falling towards the 1,05 level in the early hours of the new week as most of the catalysts that have weighed on the euro recently remain in play.

Last week's data confirmed concerns about the course of the European economy, while German inflation data released on Friday kept the prospect of the European Central Bank becoming more aggressive in cutting key interest rates high in the coming months.

Geopolitical risks remain high despite the ceasefire that has been agreed in the Middle East, as developments on the Ukrainian front could escalate the conflict between Russia and West to very dangerous levels.

The main catalysts weighing on the European currency remain high on the agenda and beyond some good reactions, the euro may will find it particularly difficult to develop a strong upward momentum.

US Treasury yields have shown some signs of equilibrium with the 10-year bond hovering near 4.20, having moved well away from the recent highs of 4.48, with the scenario of approaching 4.00 in the near future remaining a good possibility.

The new week is expected with great interest as the agenda is very rich with the highlight of the US new jobs that will be announced on Friday, while the ISM index for the course of the manufacturing sector in the United States stands out on today's agenda.

I remain in a wait-and-see position at these levels, maintaining the idea of buying the European currency on some new dips near the recent lows of 1,0330 level.

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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