EUR/USD: 1.0800 level remains under challenge despite Euro's temporary reaction

The single European currency is currently defending the level of 1.08, after yesterday's losses in anticipation of critical macroeconomic data from  Eurozone which, if they surprise, could strongly disturb the exchange rate.

European currency questioning was the main feature of yesterday with a mild bearish momentum on the table but so far despite the 1,08 level being challenged the euro has managed to defend it.

After the highs of 1,0950 that Euro had managed to climb, we are in the second week in a row where the negative momentum and correction of the exchange rate is on the table and although the euro keeps signs of reaction with great fidelity, the scenario for further losses remain as a good possibility.

No differences in general market picture with bets relatively unchanged on the prospects for a rates cut by Fed and ECB.

At the moment most bets are centered around the prospect of two more cuts by Fed although the scenarios of one and only or even three cuts are not out of the game.

While on the part of  Ecb, the bets are high that there will be two more cuts in key interest rates by the end of the year.

In tomorrow's Fed meeting it is very difficult to have any surprises and the basic scenario is that interest rates will remain unchanged, consequently, the interest is concentrated on President Jerome Powell statements.

But before tomorrow's Fed meeting, today's agenda precedes it, which is extremely rich with the growth rate of the European and German economy and several inflationary data standing out.

While on the other side of the Atlantic interest is presented on the preliminary data for the labor sector in the United States which pave the way for Friday's top tier data.

I remain on hold as may it is relatively early to consider the possibility of buying the European currency while on the other hand although I had significant doubts about Euro's ability to move above 1,10 I failed to find the right entry point to buy the dollar.