Vasilis Tsaprounis
Independent Analyst
The single European currency is holding above the 1,08 levels trying to defend the small gains of the last 2 weeks.
Τhe resurgence of some limited possibilities for 2 interest rate cuts by Fed continues to weigh on the US currency especially after the week's macroeconomic data.
Although we had a holiday in the US yesterday due to Independence Day the US Dollar remained in question as the dust from the disappointing macroeconomic data for the US services sector on Wednesday has not settled.
The continued reaction of the European currency has moved the exchange rate away from the narrow range of fluctuation near the levels of 1,07 but I estimate that there are still no concrete signs that can certify a change of trend and an easy return of the euro above 1,10 level.
New jobs in the United States often act as a trigger for increased volatility and strengthening of some particular momentum or changing it completely.
So, today's NFP data is expected with great interest by investors which, together with Retail Sales in the Eurozone, stands out on today's agenda.
The latest reaction of the European currency didn't complete my target about buying the European currency close to the levels of 1,06, but still its not be completely off the agenda as the level of interest rates continues to be clearly in favor of US currency and further strong rise of the euro it will not be an easy task.
Now my thoughts is focused on looking for levels to buy the US currency with levels near 1,10 or above being one of the targets for now.
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