Vasilis Tsaprounis
Independent Analyst
The single European currency remains locked in an extremely tight range around the 1,09 level .
In the wake of yesterday's day which was characterized by extraordinary calm due to Independence Day in the United States where the key stock markets were closed.
The market behavior was quite expected , the range of variation was extremely limited either side of the 1.09 level and options for scalping trading turned out to be the best idea as also mentioned in yesterday's article.
A general confusion remains on the table as it is currently difficult to detect any specific direction for the pair.
This calm environment is expected to come to an end soon , starting today with the crucial announcement of the latest Fed minutes and then culminating on Friday with the announcement of the new jobs in the United States is expected to increase volatility greatly.
While the landscape for the European Central Bank's intentions is clearer at the moment, there remain quite a few clouds over the Fed's similar intentions , as the bets on whether or not it will continue in interest rate increases are divided .
So the announcement of the latest Minutes , but mainly Friday's data on the critical sector of the labor market in the United States is awaited with particular interest and the possibility that the bets will change is increased.
At the moment I have no new data to change my basic strategy which, apart from exploiting the limited trading range on some days when the markets are characterized by extreme calm due to the absence of any data, the positioning in favor of the European currency on sharp dips remains in my thought.
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 extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.