EUR/USD: The 1.0700 remains a challenge despite the latest Euro reaction

The single European currency is under mild pressure retreating towards the 1,0750 level as yesterday's very good reaction appears to be at an end.

Yesterday was quite interesting with the European currency bringing back to the table one of its key characteristics that of reactions and the exchange rate managed finally not to drop below the 1,07 levels reacting relatively easily approaching 1,08.

Data on the path of German inflation announced yesterday showed a small easing of inflationary pressures which strengthens the chances for the first reduced of the main rates from  ECB on June.

We will probably have greater confirmation of this thought today, as later in the day the course of inflation in the eurozone will be announced, which will probably confirm that inflationary pressures, although they remain, are in a de-escalation phase.

And today's agenda is rich and in addition to inflation in the Eurozone important data are one more preliminary data on the labor sector of the US,  as well as  President Powell speech  in the late afternoon.

The general picture of the market does not show big differences despite yesterday's reaction of the European currency.

The US dollar currently appears to be holding a slight advantage and the possibility that the 1,07  level will again come under challenge remains.

At the same time, as it proved once again, the European currency's characteristic of achieving good reactions remains in the game with very good fidelity.

That's why I'm not moving away from my idea to buy the European currency after some new dive much below the levels of 1,07.