The single European currency has returned to levels of 1,06 as it lost most of its recent gains during the day yesterday.
Τhe best pace at which the American economy moves was confirmed yesterday once again as the indicators of manufacturing activity in the Eurozone continued to move downwards While the corresponding one in the American economy surprised positive by exceeding estimates.
This development brought the US dollar back to the forefront with the result that the exchange rate fell almost 100 basis points and the level of 1,07 has been faraway again for the European currency.
Market behavior during yesterday broadly confirmed my thinking as expressed in yesterday’s article as I expressed significant doubts as to whether the European currency’s upward momentum would continue.
Of course, the announcement about the course of the manufacturing sector in the Eurozone and America acted as the trigger for the significant retreat of the European currency, but in any case, as I pointed out yesterday, in view of tomorrow’s important day with a very rich agenda, it would be difficult for investors to remain with big bets in favor of the European currency at high prices.
The announcement of yesterday’s economic news was a good excuse for the market to digest the levels ahead of tomorrow’s agenda.
Today’s agenda, without be poor, does not have any explosive news and the only thing that stands out is the announcement of the Ifo Institute on the clima and expactations of the German economy, while on the US side, the new homes sales are announced.
A possible scenario for the continuation of the day is the exchange rate traded near the 1.06 levels and either side of it without breaking critical levels as the last two days of the week gather a lot of interest with important announcements and it would be difficult in view of these for investors to get big bets in favor of one direction or the other.
