Vasilis Tsaprounis
Independent Analyst
The single European currency remains in a narrow trading range between 1,10 and 1,1050 levels as investors are extremely wary of taking big bets ahead of US consumer inflation announcement later in the day and tomorrow's European Central Bank meeting.
Yesterday as expected did not provide any surprises with the trading range limited to only 35 basis points between 1,1015 and 1,1050 as the very poor agenda and the wait for today and tomorrow's developments took out the big bets from he table .
Bets on interest rates outlook remain unchanged with most likely a 25 basis point rate cut this Thursday by the European Central Bank and next Wednesday on the 18th by the Fed.
However, there is considerable room for surprises as several officials from both central banks have expressed differing views.
Today's announcement on the path of US consumer inflation is perhaps the most critical macroeconomic data ahead of Fed's meeting, and any major surprise could affect bets on next Wednesday's decision.
Officials from both central banks are trying to walk a tightrope between trying to reduce inflation to the 2% target while also protecting the economies from the possibility of a recession.
As we approach the European Central Bank meeting a wait-and-see attitude remain the best thought as any possible surprise carries the risk of major volatility.
No changes on my thought of buying again the US currency at some sharp peak near the 1.12 level or maybe even above this.
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 bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.