EUR/USD: Euro remain close to 1.0900 level but doubts lurks
|For the fourth consecutive day the single European currency remains close to the levels of 1,09 in a very limited range of variation as the upward momentum of the previous days shows strong signs of fatigue.
The European currency received a temporary limited challenge in the wake of yesterday's announcement on Retail Sales in the United States which pleasantly surprised as they were announced well above estimates but did not act as a ''game changer''.
The change in bets on the prospects of a Fed rates cut continues to weigh on the US currency, giving the euro an opportunity to develop a mild upward momentum.
Ηowever, I continue to have my doubts about the European currency's ability to maintain this momentum for a long period of time by securing relatively easily but mostly staying well above the 1,10 level.
Even though the bets for two reductions in the basic interest rates by the Fed till the end of the year is almost priced in, a similar its expected to happen and from the European central bank something that will keep on the table the interest rates gap in favor of American currency with the consequence that the continued rise of the European currency will not an easy task.
Today's agenda without being indifferent does not include any announcement or very high-profile news so interest shifts on tomorrow where in the wake of the European Central Bank meeting President Lagarde could feed the markets with some fresh volatility.
I remain on the idea about the possibility of buying the US Dollar at levels well above 1,10.
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