The single European currency has returned to a mild uptrend trying to absorb yesterday’s losses which sent the pair to the threshold of the 1,09 level.
As ι mentioned in yesterday’s article, increased bets for a 25 basis point hike at the next Fed meeting boosted the US currency and put the mildly upward momentum of the European currency in question.
Yesterday although poor of any major macroeconomic announcement maintained this rationale.
The only macroeconomic data released on manufacturing activity in the United States pleasantly surprised markets as it came in much better than expected which provided some boost to the US currency as US Treasury yields remained high.
Today’s agenda is not indifferent with the ZEW Institute’s survey of economic growth and the economic activity sentiment of the German economy to expected with considerable interest. While from the point of view of the US economy, the announcement about the construction of new homes is interesting, which always shows a percentage of the economic health for the American economy.
Without any significant surprise from the announcements I don’t see anything different as the overall picture of the market remains the same.
The European currency’s mildly bullish momentum remains in play as does its challenge as corrections often come back to the fore.
As mentioned in the past in previous articles whenever there is a dip in the European currency the prospect of buying positions has proven to be a very good idea as relatively soon the European currency reacts and returns to a mild upward trend.
I see no significant reason to change this strategy. –ut avoiding positioning in favor of the European currency when mild upward momentum is underway and the exchange rate is hitting high prices as it has been proven that corrections also appear very easily.