Vasilis Tsaprounis
Independent Analyst
The single European currency is trading marginally below the 1.03 level in the early hours of Thursday as investors remain cautious and do not seem willing to take big bets on a potential shallow market due to the holiday in the United States where markets will remain closed in tribute to the loss of former US President Jimmy Carter.
Yesterday, without giving any major surprises, was characterized by new mild losses for the European currency, which, as I noted in a previous article, apart from some good reactions, is currently struggling to develop any upward momentum and move further away from the recent lows of 1.0220.
Macroeconomic data from the eurozone continues to cause some concern, leaving room for the European Central Bank to move more aggressively regarding the prospects of further reductions in key interest rates.
So without any major surprise, the interest rate gap in favor of the US dollar will remain on the table, which is still one of the main obstacles to the European currency returning to much higher prices.
In today's antenna, retail sales in the eurozone stand out and some surprise far from estimates could affect the exchange rate.
On the other side of the Atlantic, we may not have any announcements due to closed markets, but the agenda includes a flurry of statements from a host of Fed officials that investors will be watching with interest.
For now, I remain on hold without any significant change in my thinking about buying the European currency on a new dip, possibly below the recent lows of 1.0220.
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