fxs_header_sponsor_anchor

Analysis

EUR/USD: Battle at 1.0600 level as Euro struggles to react

The European single currency slips slightly below 1,06 level for the second time in the last 24 hours as the US currency continues to be in the spotlight.

The European currency is really struggling to limit its losses as the reaction from yesterday afternoon when it again fell marginally below 1,06 was very limited and has so far failed to extent the correction.

Yesterday's agenda did not give any surprises, the data on the European economy that were announced kept the concerns on the table while on the other side of the Atlantic various statements by Fed officials kept the familiar rhetoric.

Υields on US government debt securities remain at high levels, which further supports the US currency, but showing some signs of stabilization.

10-year notes, which act as a barometer for yield levels, are trading near 4,43 down slightly from 4,48 level a few days earlier.

I maintain the view that current levels are quite high and we are likely to see further tapering relatively soon which could act as a catalyst for the European currency to find cause for correction.

The aftermath of the Presidential elections in US and the triumph of Donald Trump alongside with the political developments in Germany remain high on the agenda, negatively affecting the European currency.

No changes in bets on interest rates outlook as some good chance for 25 basis points cut from Fed in December remains on the table while the landscape is relatively cloudier from the European Central Bank side.

Today's agenda is monopolized by US with the consumer price inflation index standing out  as there is nothing of substance on the Old Continent. 

Τhe European currency although it is in the corner seems to be fighting for the critical level of 1.06 and despite the small retreat below it, the level is not considered to have collapsed yet.

I continue to maintain a conservative approach and although I feel that signs of a reaction of the European currency will appear on the table soon I prefer to remain on hold.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.