EUR/USD: Pressures on Euro still on the table awaiting US GDP
The single European currency remains under pressure trying to defend the 1,05 level which is again under chalenge.
In the wake of last week's US Federal Reserve meeting an incredible run in favor of the US currency has begun with the euro taking losses for a seventh consecutive day.
While the lows of 1,0488 which noted yesterday evening are very close to the lowest levels (1.0481) where was the exchange rate was January 2023.
Τhe downward momentum of the Euro continued based on the same data that has weighed on the European currency recently as the concern about the course of the European economy remains, the specter of recession has not gone away and the US economy has a clearly better pace.
While the climate in favor of the US dollar once again strengthened by the climate of uncertainty in international stock markets as it traditionally functions as a safe haven currency.
Today and tomorrow the agenda is extremely rich and the possibility of some reversal in the general picture weighing on the European currency lately is increased.
The announcement on the course of Consumer inflation in Germany is a harbinger for tomorrow's announcement of inflation in the Eurozone and is likely to create some bets for some next move of the European Central Bank as we remember that the Ecb's motto is that decisions depend on the data.
While from the side of the US economy, we have the announcement on the growth path and the personal consumption index, something that the federal central bank is watching carefully.
Although the data continues to weigh on the euro I refuse to keep a strategy in favor of the US currency on this levels and I will remain in favor of thinking that a good correction in exchange rate in favor of Euro is a scenario with increased probability.
Author
Vasilis Tsaprounis
Independent Analyst
Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.
