The common European currency continued the strong recovery and already tested the level of 1.02.
The aftershocks of the European Central Bank’s decision to increase interest rates by 75 basis points last Thursday, but also the retoric from ECB officilas for a continued aggressive policy in the next meetings also act as an important support for the European currency.
European Central Bank officials appear determined to fight the inflation ghost, even if that leads to a recession the European economy.
The significant decompression in oil prices recently and as long as the prices do not rise again to high levels are expected to make more easy the work of European officials .
Although at the last OPEC meeting there was the decision to reduce daily oil production, prices continue to move at lower levels, which means that if there is no new major geopolitical tension, prices will hardly exceed and remain above the levels of $100 for a long time.
As we mentioned in our previous article we maintain a more optimistic position expecting that energy crisis will be successfully dealt and lower oil prices will help a lot .
Nevertheless, there is still a time to achieve this, which on the one hand creates optimistic forecasts for the path of the euro in the long term, but on the other hand, possibilities of new pressures remain in near future.
Markets are now eagerly awaiting the announcement on the path of Consumer prices in the United States , where it will may lead to better conclusions about the Fed’s next moves.
I maintain the basic strategy to buy the pair on dips , something that has not let us down so far , and for the duration of the day i expect the Euro’s upward movement will limited.