EUR/USD: Euro's reactions are short-lived as Dollar remains in the spotlight, looking the 1.0900
|The single European currency remains below the level of 1.10 as yesterday's reaction was short-lived and although the euro touched the critical level of 1.10 it failed to break it.
After last week's impressive gains where the US currency strengthened by around 250 basis points as it fell from 1.12 level to 1.0950 the last 2 days have been characterized by relative calm with the trading range remaining tight as investors avoiding to receive further bets.
Yesterday did not provide any surprises and the poor agenda helped to keep the exchange rate in a limited fluctuation range between the levels of 1.0960 - 1.10.
The fluctuation range between 1.10 - 1.12 levels that the exchange rate was the last few weeks its already out of the game, but still the sharp decompression in the pair with significant extensions outside these levels is not in the table.
Developments on the Middle East front continue to be high on the agenda. Possible further escalation is likely to further strengthen the US currency as it is known traditionally works as a safe haven currency.
In today's agenda the only thing that stands out is the announcement of the Minutes from last Fed meeting.
As beyond limited reactions, the European currency struggles to develop any upward momentum at the moment, the possibility that the American currency will find itself at better prices and move towards the 1.09 level is gaining some ground.
No changes from my yesterday thoughts. As the exchange rate has moved far away from the desired levels for buying the US dollar, my attention is now focused on the prospect of buying the European currency, maybe near to the 1.08 level.
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