EUR/USD: Euro at 1.1050 level in a calm Monday after Friday's storm
|The single European currency is under slight pressure in the early morning trading hours of the new week with 1,10 - 1,1050 level being the immediate challenge.
Friday, as expected, was stormy with the exchange rate in high volatility mode and international stock markets recording sharp losses.
Data on new jobs in US announced on Friday were disappointing as it was lower than estimates, while the data of the previous month was also revised downward.
The American currency soon came under quite intense pressure with the European currency moving temporarily above the levels of 1,150 but this development did not continue.
Investors relatively soon appeared reluctant to continue supporting the European currency as a decision by the European Central Bank this week on a possible key rate cut remains on the table.
The exchange rate's behavior on Friday was a good indication that investors remain confused and although the European currency was in the spotlight a few weeks earlier and managed to approach the 1,12 level, continuing the upward momentum proved to be a significant challenge.
It's now Central Banks time as European Central Bank and Fed meet this and next week and rate cuts of 25 basis points from both of them remain the main scenario at the moment.
Today's agenda is relatively indifferent as there is nothing important and in view of significant developments in the coming days the exchange rate is expected to remain in a narrow range of fluctuation.
Thursday's ECB decision is likely to increase speculation and the European currency will continue to come under some pressure with the 1,10 level soon to be under challenge, however I would prefer to remain on a wait-and-see attitude while keeping the idea of buying the US currency on some peak , maybe near 1,12 level.
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