EUR/USD: Will US NFP data be a game changer?
|The single European currency falls back below the 1,08 level after yesterday's reaction.
Yesterday did not provide any surprises and the reaction of the European currency was quite expected, especially in view of today's very important data on new jobs in the United States, as a large part of investors preferred to take a wait-and-see attitude with limit the open positions in favor of US currency of the last few days.
Τhe behavior of the market has confirmed the thought as it was expressed in previous articles when I pointed out that the mild downward momentum remains in play but in view of the very important data of Friday this will not take much scope and the reaction of the European currency is very likely to return to the front.
Υesterday's reaction certainly cannot be characterized as a change of direction and the limited range of variation is expected to remain until noon and the important announcements.
Yesterday's data on the path of the European economy confirmed that the specter of recession continues to linger and as the Eurozone economy continues to struggle the European currency will find it very difficult to repeat November's strong rise.
New jobs outside the agricultural sector in US traditionally act as a trigger for changing the game if there are significant deviations from the estimates and for this reason the continuation of the day is expected with great interest.
While at the same time, the announcement of the index on the consumer sentiment of the University of Michigan is also interesting, which the market ''listens'' to with sensitivity several times.
It stands to reason that a wait-and-see approach would be the best idea ahead of the announcements.
Μy thoughts to buy the US currency at the levels of 1.10 and above although it turned out to be quite correct unfortunately I could not implement it as I expected even higher levels.
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