Vasilis Tsaprounis
Independent Analyst
The single European currency continues to be under mild pressures and has already lost the level of 1,07 falling so far to 1,0673.
Monday as we expected was an extremely quiet day as due to the holiday in the United States trading was limited to a very tight range with the US dollar gaining slightly towards the end of the day.
The mild dynamic which characterizes the US currency lately continues to be in the foreground and what the dollar did not achieve yesterday it achieved today in the early hours at the opening of the European markets.
The overall market picture remains the same as investors are swayed by the bets that still remain on the table that the US Federal Reserve has not completed its rate hike cycle.
Τhe European central bank's next moves are fully discounted as beyond two hikes in the next two meetings there is nothing else on the table for now. Τhis development makes it difficult for the European currency to develop some momentum again.
Αt the same time, however, as the rhetoric of the officials of the European Central Bank maintains an aggressive tone, I estimate, as I have mentioned in previous articles, that the pressures on the European currency will remain mild and we will not have a price collapse.
Τoday's agenda is focused on the announcement on Consumer confidence in the European and US economy. While let's not forget that Towards the end of the week we have the announcement of data on new jobs in the United States which is expected to increase volatility in the markets.
I will maintain the same reasoning on market's behavior, I avoid being in favor of the US currency when the pair makes new local lows and correspondingly I am in favor of buying the European currency whenever it makes new dips with the aim of short corrections.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.