Vasilis Tsaprounis
Independent Analyst
The single European currency is again under mild pressure, approaching the level of 1.03 as, as expected the reaction of the previous days was of limited duration and beyond temporarily moving away from the recent low of 1.0220, it seems difficult for the European currency to develop any strong upward momentum at the moment .
Yesterday's agenda broadly confirmed the market picture as it has been shaped recently, with the data announced from the Eurozone having mixed signs and keeping concerns on the table, while yesterday's macroeconomic data from the United States once again exceeded expectations.
On the other hand, the market sentiment was strongly influenced by the statements of incoming President Donald Trump, who keeps high on the agenda the rhetoric of imposing further customs duties on imports .
US stock markets came under pressure with the risk aversion climate favoring the US dollar, which as is known traditionally functions as a safe haven currency.
At the same time, yields on US government debt securities remain high, with the 10-year bond having climbed to the level of 4.7.
The bets are currently focused on the possibility of two interest rate cuts by the Fed in 2025 totaling 50 basis points, which has affected the yields on US government debt securities, but I estimate that they are at high levels and I would expect a decompression relatively soon.
Today's agenda is quite rich, with consumer confidence in the eurozone, preliminary data on the labor sector in the United States, and the Minutes from the latest Fed meeting standing out.
No change in my thinking, I expect intense volatility and a further plunge in the European currency to consider the possibility of buying the euro.
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