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 trades at yearly lows below 1.0500 ahead of PMI data
EUR/USD stays on the back foot and trades at its lowest level since October 2023 below 1.0500 early Friday, pressured by persistent USD strength. Investors await Manufacturing and Services PMI surveys from the Eurozone, Germany and the US.
GBP/USD falls to six-month lows below 1.2600, eyes on key data releases
GBP/USD extends its losses for the third successive session and trades at a fresh fix-month low below 1.2600. This downside is attributed to the stronger US Dollar (USD) as traders continue to evaluate the Fed's policy outlook following latest data releases and Fedspeak.
Gold rises toward $2,700, hits two-week top
Gold continues to attract haven flows for the fifth consecutive day and rises toward $2,700. XAU/USD continues to benefit from risk-aversion amid intensifying Russia-Ukraine conflict. Investors keep a close eye on geopolitics while waiting for PMI data releases.
Ripple surges to a new yearly high; XRP bulls aim for three-year high of $1.96
Ripple extends its gains by around 10% on Friday, reaching a new year-to-date high of $1.43 and hitting levels not seen since mid-May 2021. The main reasons behind the rally are the announcement that the US SEC's Chair Gary Gensler will resign and the launch in Europe of an XRP ETP by asset management company WisdomTree.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
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.