The single European currency trades in a narrow range of fluctuation as after the attempt to react geopolitical developments weigh on the effort for further recovery.
The developments of the weekend with the Hamas attack against the Israeli State has raised the level of uncertainty to high levels and once again the European currency is feeling the pressure of the developments.
Τhe attempt to develop a strong upward Momentum after Friday afternoon has been strongly contested and it remains doubtful whether in an environment of intense uncertainty the European currency can return to the fore.
International stock markets returned to some balance as after the shock of the weekend’s developments losses were contained and some mild uptrends emerged.
Τhis development could potentially strengthen the European currency more but something that has not happened so far.
At the moment the exchange rate is temporarily locked in a range of fluctuation between the 1,05 – 1,06 levels and new data may be needed on the table in order for there to be a definite direction.
Today’s agenda are relatively indifferent as no announcement is expected regarding macroeconomic news, while the only thing that stands out is the speech of the President Lagarde in which nothing new is expected.
If she will refresh the aggressive tone in the policy of the European Central Bank which has faded of late, perhaps it is the only catalyst that could significantly strengthen the European currency today.
