EUR/USD: Euro on defensive mode is fighting near 1,0850 level

The single European currency maintains a soft reaction having for now defended the level of 1,08.

In a choppy trading mode yesterday was interesting and although the range of variation was limited the sign changes were strong with the European currency finally successfully defending the 1.08 level, but without a potential down break being out of the game.

The announcement on the growth rate of the United States maintained optimism that the American economy currently shows no signs of recession.

Βets remain unchanged on the prospects for a rate cut by the Fed and  ECB, some major change could come later in the day as Personal Consumption Expenditures Price Index is released, one of the Fed's favorite indicators it uses to make its decisions.

Losses in international markets continued throughout yesterday with the S&P barometer index continuing its recent day's correction, however, the US dollar had limited gains from this development.

In general, the picture of the market remains the same with the US dollar trying to develop a positive dynamic without, however, having much intensity, while on the other hand the European currency recalls once again its ability to maintain reaction behaviors on the table with excellent fidelity.

Today's agenda is quite interesting and in addition to Fed's favorite index which acts as a harbinger of inflation data the agenda is complemented by the University of Michigan's survey on consumer sentiment in US.

There is no change in my thinking and I remain on hold.