EUR/USD: The pair remains ''heavy'' near 1.0800 – 1.0850 levels with no direction
|The single European currency is trading near the 1.0850 in the early hours of Monday, awaiting data on inflation for the German economy, with investors remaining extremely cautious, avoiding big bets.
A little earlier, retail sales in the German economy showed a positive tone, which exceeded estimates, giving a small boost to the European currency, managing to move a little further away from the level of 1,08.
President Donald Trump continues to monopolize interest with the ''tariffs dance'' remaining high on investors' agenda.
Unfortunately, the messages from the Ukrainian front are not pleasant and as I had mentioned in previous articles, unfortunately I was confirmed as indeed the thorns until the final ceasefire remain big and the optimism of the previous weeks has been tempered.
The general market picture seems to remain stable, with the pattern of the previous days has a good chance of continuing as the pair remains heavy. Investors avoid taking big bets and it is possible that the exchange rate will have difficulty breaking some critical levels.
Apart from President Donald Trump '' tariffs dance'', interest still 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.
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 rounded off by the Chicago PMI index about business conditions across Illinois, Indiana and Michigan, which often acts as a proxy of business conditions in the United States.
No changes in my thoughts, i remain on hold and continue to have my doubts about how the European currency could re-fuel a strong bullish cycle. 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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