EUR/USD: Euro's rebound well above 1.0850 may comes under challenge
|The single European currency trades near the 1,0850 levels in the early morning hours on Thursday on consolidation mode.
The positive surprise from yesterday's eurozone growth announcement appears to be fading with the European currency struggling to maintain yesterday's upward momentum.
On the other hand, the better-than-expected data acted as a buffer and further declines in the European currency have been avoided for the time being.
Let's not forget that recently the concerns of eurozone officials about the course of the European economy, which may have avoided the risk of recession for the time being but the rate of recovery is not satisfactory, has been high on the agenda.
On the other side of the Atlantic, the corresponding announcement of the US GDP did not surprise positively, with the consequence that it in turn burdened the American currency.
In any case, the losses of the US currency so far can be considered controlled, as in view of today's announcements, but especially tomorrow's announcement on new jobs in the United States, investors kept bets of a limited size.
In today's fairly rich agenda, in addition to the path of consumer inflation in the eurozone, the Personal Consumption Expenditure index in the United States stands out one of Fed's favorite indicators as the main predictor of inflation tate.
Same picture on interest rates outlook , the chance that the Fed will cut rates by 25 basis points at the next meeting is almost 100% and there will need to be significant surprises till the meeting to change that outlook.
From European Central Bank side the mixed messages remain on the table despite yesterday's positive data as several central bank officials have divergent views, with President Lagarde maintaining the same rhetoric that every decision is decided from meeting to meeting depending solely on macroeconomic data.
Geopolitical developments remain high on the agenda, with Middle East front being the most important risk.
Τhe behavior of the market during yesterday partially confirmed my thoughts on the desire to buy the European currency but this happened much earlier than the desired levels.
In view of the stormy news today and tomorrow a wait-and-see attitude might be the best idea keeping the thought of buying the euro into some new sharp dip as reactionary behaviors have returned to the table with fairly good fidelity.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.