EUR/USD: 1.0900 level may soon be under challenge as Euro struggles to react

The single European currency is under mild pressure as Euro's contestation after a temporary pause earlier in the week continues.

The exchange rate has already retreat below the 1.0950 level and now 1.09 is the next challenge.

Yesterday did not provide any surprises, the US currency remained in the foreground as there was no any catalyst that could help the European currency to give any good reaction.

The announcement of Minutes from the last Fed meeting did not provide any major surprises and combined with the latest strong macroeconomic data on the US labor sector the possibility of another 50 basis point cut by the Fed has become very limited.

In general there is no significant change in markets environment compared to yesterday.

Developments on the Middle East front continue to be high on the agenda. Possible further escalation is likely to further strengthen the US currency as it is known traditionally works as a safe haven currency.

As beyond limited reactions, the European currency struggles to develop any upward momentum at the moment, the possibility that the American currency will find itself at better prices and the 1.09 level be under challenge soon gains some ground.

A catalyst for the further strengthening of the US currency or for a good reaction of the Euro could be today's announcement on consumer inflation in the US, which if it surprises is quite likely to create strong volatility in the exchange rate.

In addition to the announcement of US CPI,  the weekly initial jobless claims, which are always followed with interest by investors, in combination with some statements from Fed officials, today's agenda is completed.

No changes in my thoughts. I remain on hold and my attention is now focused on the prospect of buying the European currency,  maybe near to the 1.08 level.