Vasilis Tsaprounis
Independent Analyst
The single European currency remains slightly above the levels of 1,08 in an extremely narrow range of variation following the very poor agenda on Friday and with the possibility that we will have a relatively quiet trading day today as well, as beyond the speech of President Lagarde and today's agenda is extremely poor.
Friday as expected did not provide any surprises as the range was limited to only 30 basis points and investors continue to shy away from big bets as they look for new strong data which could influence the exchange rate and give some direction.
Τhe euro has tried to develop some mild bullishness in addition to the reactionary behaviors which it continues to achieve with great fidelity but currently struggling to achieve this.
The shift to the summer on Fed's policy change and the ongoing concern about the path of the European economy which remains on the verge of stagnation continue to act as the main weights preventing the European currency from developing a strong upward momentum.
On the other side of the Atlantic the yields on the US government debt securities although they remain at attractive prices have fallen significantly which makes investments in the US dollar less attractive.
While the amazing performance of the international stock markets, which have broken important historical records, certainly limit the needs for dollar purchases, which traditionally functions as a safe haven currency.
I don't see any significant volatility for today unless there is some surprise on the table from either Lagarde speech or some geopolitical development with the most likely scenario the pair will remain in limited range of volatility and today.
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