EUR/USD: Dollar on challenge as the US elections could create unexpected turmoil
|The single European currency has touched the 1,09 level in the early hours of Monday as growing concern about the results of the US elections led to an opening of the week with an impressive gap in favor of Euro.
At the same time, the market seems to be repricing Friday's disappointing US jobs data, where the announcement was much worse than estimates.
The labor sector, one of the most critical pillars for the course of the American economy, has returned to an environment that causes concern.
It is worth remembering that one of the catalysts that led the European currency to rally in August and managed to approach the 1.12 level were the signs of doubt that had appeared regarding US labor sector.
The prospects of interest rate cuts by Fed and ECB continue to monopolize the interest of investors and are expected to largely determine the course of the exchange rate.
However, developments regarding the presidential elections in the United States have temporarily overshadowed everything else and the current week is expected to be stormy with possibly very great unrest.
The behavior of the European currency in recent days continues to confirm my thoughts and my desire as these were clearly mentioned in previous articles to buy the European currency, however, once again I failed to find the right entry point as I was waiting for a further dip for position in favor of the euro.
Today's agenda is relatively indifferent without anything important, but in any case, as I mentioned above, any macroeconomic data would be overshadowed by developments in America , with the bets currently being split between the two contenders.
I would prefer to remain on the sidelines as great turmoil and intense volatility are expected in the markets, but without moving away from the idea of buying the European currency, although temporarily the exchange rate has made a fairly satisfactory rebound.
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