EUR/USD: Signs of fatigue for the Euro, retreats below 1.1700
The single European currency fell below the level of 1,17 in the early hours of Thursday as the upward momentum of the last 2 days shows signs of fatigue.
The recent release of the inflation price index in the United States has significantly boosted bets that the Fed will cut key interest rates by 25 basis points at its next meeting.
This development, along with the ongoing dispute between President Trump and the Fed Chair, has created pressures on the US currency.
On the trade war front, the same story continues, President Trump's controversial policies remain high on the agenda, the environment continues to be cloudy, with surprises remaining a significant risk for the markets.
The announcement on the course of the European economy a little earlier did not bring any surprises as the numbers were within estimates.
Growth remains on a positive ground, but challenges remain on the table, with the issue of tariffs being the main chalenge, especially for the major economies of the eurozone, while a possible very strong euro will certainly create new concerns.
Today's agenda closes with the announcement of the path of producer inflation in the United States, and a possible upward surprise is capable of changing the bets on Fed's decisions again.
Νo changes in my thinking, I remain on hold and the idea of buying the US currency before 1,20 level remains my main strategy for now.
Author
Vasilis Tsaprounis
Independent Analyst
Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.
