Vasilis Tsaprounis
Independent Analyst
The single European currency is falling marginally below the 1,05 level as, as expected, the reactions could not continue and Euro's positive upward momentum is not the main scenario at the moment.
As mentioned in yesterday's article once again, the main catalysts that weigh on the European currency remain on the table, weighing on the European currency's effort to show something better than a good reaction.
Geopolitical risks, political developments on the European continent and concerns about the course of the European economy remain high on the agenda and continue to weigh on the European currency.
Without any major surprises on yesterday's agenda, the US currency returned to the forefront, supported mainly by the rise in yields on US government debt securities, which had been under pressure in recent days.
I remind that US government debt securities had made a significant rally recently with the 10-year yield peaking at 4.48.
The significant decline in yields fully confirmed the thoughts expressed in previous articles, as I had given a significant probability to the scenario that the 10-year yield would very soon approach the level of 4.00, something that would give the European currency a breather and allow it to move further away from the recent lows of 1,0330.
Indeed, the decline to the 4.12 level a few days earlier was one of the reasons that supported the European currency's temporary rise above the 1.06 level.
Today's agenda is dominated by the announcement of consumer inflation in the United States, and any deviation from expectations could strongly affect the exchange rate.
In combination with tomorrow's meeting of the European Central Bank, where a further reduction in key interest rates by 25 basis points is expected, the possibility that the euro will remain under pressure remain in the game.
There is no change in my thinking. I remain on hold, expecting a further fall in the European currency in order to consider the possibility of buying the euro.
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.