The single European currency remains stuck near the 1,0850 levels ahead President Jerome Powell testimony before Congress, with all investors keenly awaiting the Fed’s Chairman’s comments on the prospect of a cut in key interest rates this summer.
At the moment most bets are on the possibility that the Fed will change monetary policy in June and any comments from Chairman Powell that will change these bets are expected to strongly affect the exchange rate.
Yesterday was characterized by a mild reaction of the European currency in the wake of the announcement on the path of the services sector in US which disappointed.
Nevertheless, as was logical, this reaction did not have continuity as from today until Friday stormy developments are expected with important statements as well as macroeconomic data, with the consequence that investors remain cautious and avoid big bets for now.
On today’s agenda, in addition to the testimony of President Powell, retail sales in the eurozone stand out, as well as preliminary data on the labor sector in US, which could give a temporary limited direction.
Τhe overall market picture remains the same with the pair remaining locked in a narrow range and for almost ninth consecutive day the trading range is not much more than 50 basis points with the exchange rate remaining extremely ”heavy”.
In view of the important developments of the next three days, a wait-and-see attitude would be the best idea.
