EUR/USD: Mild recovery for the Euro above 1.0750 level, but doubts remain on the table
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The single European currency is trying to move away from recent lows at the level of 1,0730, but without a catalyst in sight that would re-fuel a strong upward momentum like that at the beginning of the month.
The exchange rate seems to maintain the pattern of the last two weeks where after the European currency peaked at a high of 1.0955, doubts about further rise have come to the table with the pair having already corrects more than 200 basis points.
President Donald Trump continues to monopolize interest with the ''tariffs dance'' remaining high on investors' agenda.
All analysts are trying to decipher the consequences of Donald Trump's policies, which, however, continue to surprise and the final imprint is certainly uncertain.
The general picture of the market remains the same without any major surprises and, apart from President Donald Trump, interest remains high in developments on the Ukrainian front and European politics, especially after the recent announcements of a gigantic increase in spending on infrastructure and defense.
Despite the optimism for a quick end to the tragedy on the Ukrainian front after and the latest deal for Black Sea trade between US and Russia there are still many thorns left until an irreversible ceasefire.
The European economy continues to be a concern and it is not certain when the positive effects of the defense and infrastructure support packages from the eurozone states will be seen in the real economy.
Today's agenda is quite full with the growth rate of the US economy, weekly unemployment claims and several statements by Fed and ECB officials, with those by President Lagarde standing out.
No changes in my thoughts, i continue to have my doubts about how the European currency could re-fuel a strong bullish cycle and I would give good odds to the scenario where the exchange will rate remains ''heavy'' without any significant direction at the moment.
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