The single European currency remains close to 1,0850 level in a limited range of variation awaiting from today until Friday a several important macroeconomic data as well as important developments which could act as a catalyst to release the pair from the very limited trading ranges of the last few weeks.
Yesterday as expected didn’t give any thrill with the trading range limited to only 30 basis points as the very poor agenda didn’t help in taking any bets.
Today’s agenda is much more interesting than yesterday with the path of producers inflation in the eurozone and the services sector in the United States standing out.
While let’s not forget that from tomorrow until Friday we have stormy news with President Jerome Powell testimony on the course of the American economy, European Central Bank meeting on Thursday and the very important data for the labor sector in the United States on Friday.
The pair remains ”heavy” as investors are extremely wary of taking big bets ahead of these developments.
At the same time, the high prices in the international stock markets have supported the European currency for the time being, but a possible change in the scene with the presence of some strong corrections is expected to strengthen the US dollar, which traditionally works as a safe haven currency.
The behavior of the market in the last few days with the very limited ranges of variation have favored behaviors for scalping trading but something that cannot continue for long and I estimate that soon the levels will change.
I see no significant reasons to change my strategy and wait for some significant dips in the pair for the possibility of positions in favor of the European currency.
