EUR/USD: Calm Monday on US Colombus Day, Euro remains on defense above 1.0900 level

The single European currency remains in defensive mode at the start of the new week trying to defend the 1,09 level.

For the second week in a row Friday found the single European currency losing ground against the dollar but at a much slower pace than the previous week.

Inflationary pressures persisting in the United States acted as the main catalyst for the new push for the US currency.

The slightly higher-than-estimated announcements on the path of US consumer and producer inflation combined with the very strong new jobs data two Fridays earlier have significantly changed the bets and now the possibility of a 50 basis point cut in key interest rates from the Fed in the next meeting is very small.

At the same time, geopolitical concerns remain high on the agenda, which supports the US dollar, which traditionally functions as a safe haven currency.

On the concerns over the Μiddle Εast front and a possible escalation adds the developments between China and Taiwan that could ignite a new front of geopolitical tensions.

Ιn such an environment and with concerns about the course of the European economy remaining high, restoring the European currency  a strong upward momentum is certainly a challenge.

Currently apart from some good reactions  Euro does not seem capable of anything better. Likely until some critical catalyst presents itself the European currency will remain in doubt and a retracement to levels above 1,12 appears to be away for now.

Today's agenda is relatively non-existent as due to Columbus day and the partial holiday in  US no major announcements are scheduled.

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.