EUR/USD: Τhe Euro again under question

The single European currency is under mild pressure as the inflation data announced yesterday for the German economy and the inflation data from France announced a little earlier show that efforts to combat inflationary pressures in EU are paying off and market are starting to put bets on the table for the prospect of the European Central Bank cutting key interest rates earlier than previously forecast.

In any case, the announcement on the path of inflation collectively in the eurozone which is expected shortly afterwards will give clearer signals and is capable of creating further scope for pressures on the European currency or abruptly changing the direction.

As I have mentioned repeatedly,  inflation and the two main central banks' interest rate levels continue to monopolize interest and remain the main catalysts affecting the exchange rate.

The common line of both central banks is the same as they continue to defend the motto that any decision and development on the path of key interest rates depends on the data.

Of course, we should not forget that the American economy continues to have a better pace than the European one, something that was also seen in yesterday's announcement, where the growth path of the US economy pleasantly surprised as it was above estimates.

If the upcoming announcements on the progress of the US labor sector show that it remains at good levels and the consumption sector does not decline I would see it difficult for the European currency to be able to continue the upward momentum of the last few days.

Today's agenda is extremely rich and if there are any surprises, intense volatility is expected.

In any case, I remain in my thoughts to buy the dollar at new highs as the temporary rise above 1,10 provided such an opportunity which I could not seize.