EUR/USD: Euro's reaction was short lived, the pair is coming back again below 1.0800 level
|The single European currency has shown strong signs of fatigue returning again back below the 1,08 level as yesterday's reaction appears to have been short-lived.
There were no surprises at yesterday's Fed meeting as the announcement to cut key interest rates by 25 basis points was fully expected.
In the aftermath of the meeting, all eyes were focused on Fed Chairman Jerome Powell, who did not, however, fuel any new bets on Central Bank's next moves.
For now remains on the table a good possibility of another 25 basis points reduction in the key interest rates on December.
The dust from Trump's triumph in the US presidential election seems to be slowly set down something that helped the European currency during yesterday's day to react quite strongly temporally returning at 1.08 level.
Τhe behavior of the market partially confirmed my thoughts as reflected in yesterday's article as I expected this reaction but unfortunately once again I missed the right entry point in favor of the European currency, which I would prefered to been much lower from 1.07 level.
The exchange rate is trying to digest the levels between 1,07 and 1.08 and maybe during the last day of the week there will be no new big bets.
Τoday's agenda is relatively poor and after the stormy news of the previous days it is not expected to give big surprises.
Τhe only standout is University of Michigan survey of consumer sentiment but there would need to be a significant deviation from estimates to strongly affect the exchange rate.
I remain on hold and would give a good odds to a limited trading range scenario for today with investors keeping limited bets and the exchange rate not breaking any critical levels.
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