The European currency’s mild upward momentum continued once again on Tuesday, hitting its second-highest price for the year after the high of 1.1030 found in early February.
Market behavior has once again confirmed my thinking as captured in yesterday’s article as higher prices have been seen with the single European currency continuing its slightly upward momentum but corrections remain still on the game.
Τhese new high prices of the single European currency were based on the same data , the limitation of the yields on the US government debt securities and the more aggressive rhetoric currently maintained by the European central bank.
While the US currency was not supported by yesterday’s macroeconomic news which showed a reduction in factory orders while at the same time some bets appeared on the table that the upcoming very important news on new jobs in the United States will disappoint.
Τoday through Friday we’re into a very interesting two days with quite a bit of major economic fundamental news to look forward to culminating in the US jobs announcement at midday on Friday.
While today at noon we have the first preview of the path of new jobs in the US with the announcement of ADP data.
The latest developments with the crisis in the banking sector of the United States led the Fed’s chairman to change his rhetoric , acknowledging that interest rate increases and the possibility that they will remain at high prices for a long time are likely to hit the American economy and although until the moment the labor sector shows particular resilience and creates optimism a likely disappointment in the numbers is expected to ring the bell of concern again.
In such a confusing environment may it would difficult for the European currency’s bullish momentum to last until Friday and even more difficult for it to remain in very high without a correction ahead of major announcements.
For this reason I remain on a wait-and-see attitude , no longer testing any position in favor of the European currency as I believe that the mild bullish momentum will have some pause.