EUR/USD: Εuro remains just below 1.0900 on a very poor agenda
|The single European currency is trading just below the 1.09 level in the early hours of the new week in a narrow range as today's very poor agenda is likely to limit investors from taking big bets.
After three weeks of mild rise the last week even marginally closed with small losses for the European currency confirming the thoughts that the upward momentum of the last few days was showing strong signs of fatigue and an easy break of the level 1,10 would not be an easy task.
The European Central Bank meeting on last Thursday and the statements of President Lagarde could not feed back further rise for the European currency and the signs of fatigue that had already appeared on the table became more pronounced with the consequence that a possible further correction remain in game.
At the moment most odds are on the prospect of two more rate cuts although the scenarios of one and only or even three cuts are not out of the game.
Today's agenda is relatively non-existent without any important macroeconomic news, while there are also no any statements from officials of the two main Central Banks, so the most likely scenario is that the trading range will remain limited.
The negative sentiment that has formed in the international stock markets in recent days has so far had a limited impact on the exchange rate, but if there is a longer duration and scope the US dollar is expected to receive some benefits as it traditionally functions as a safe haven currency.
I remain on hold as I failed to find the right entry point as I expected much higher levels for the prospect of buying the US currency.
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