EUR/USD: The pair remains calm below 1.1400 level ahead of two stormy days
The single European currency is trading between levels 1,1350 and 1.14 in the early hours of Wednesday in a narrow trading range as investors avoid taking big bets ahead of tomorrow's interest rate decision by European Central Bank and the very important data on new jobs in the United States on Friday.
The evolution of the trade war, yields on US government debt securities and the Ukrainian front continue to be high on investors' agendas, influencing international stock markets and the course of the foreign exchange market.
President Trump's controversial personality and enigmatic policies continue to worry investors, and despite the temporary lull, the risks from his frequent policy changes remain.
In general, the market picture does not show significant differences with the trading range of the exchange rate remaining at the familiar levels of the last two months, confirming investor confusion and lack of direction.
The US services sector environment survey is of interest on today's agenda, but without any major surprises, investors are likely to maintain a wait-and-see attitude ahead of tomorrow's European Central Bank meeting.
As I have mentioned in previous articles, the scenario that the exchange rate will remain between some critical levels between 1.10 and 1.16 remains a good possibility for the near future and without some big surprise in the next two days we will hardly see any significant levels being broken.
In view of two critical stormy days, apparently waiting and see attitude seems to be the best idea.
Author
Vasilis Tsaprounis
Independent Analyst
Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.
