EUR/USD: Euro is on the threshold of 1.1200 level again with an increased risk of an upward break
|The single European currency is on the threshold of 1,12 level maintaining a mild upward momentum during yesterday taking advantage of the general sentiment against the US currency.
Without any major announcement, the European currency currently maintains a mild dynamic, but I have significant concerns about whether it will be able to remain on the table.
Likely we are simply near at the top of the latest range between the 1,10 -1,12 levels as I believe the overall market picture has not changed.
International stock prices and the positive climate continues to support the European currency although in my estimation in an environment of increased concern with several signs that show a limitation of economic growth the maintenance of stock prices at these levels is a surprise.
Although there is some distance from the next Fed and ECB meetings , bets on the intentions of further reduction of interest rates continue to monopolize the interest and influence the course of the exchange rate.
Although the gap in the difference in interest rates has narrowed after the latest reduction of 50 basis points by Fed, the difference remains in favor of the American currency, and along with the concern about the course of the European economy remains at the moment the two main weights in the effort of the European currency to move much higher approaching the levels of 1.14 - 1.15, which in my view may be the higher prices that the European currency could achieve until the end of 2024.
Today's agenda is relatively poor and the only thing that stands out is New Home Sales in US.
Νo major changes in my thoughts for now, I remain on hold with the idea of buying the US currency still on the table. I would prefer levels near a 1,1250-80 to consider buying the USD.
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