Vasilis Tsaprounis
Independent Analyst
The single European currency remains stable above 1,12 level but in a limited range of fluctuation as the very poor agenda of the last day along with investor caution have limited bets.
The start of the week did not bring any surprises, the European currency maintained a mild upward trend, consequently absorbing almost all of the losses of the previous week, where it was drop at the level of 1.1065.
President Donald Trump's controversial policies remain high on investors' agendas, and although concerns about an impending trade war between the United States and China have eased significantly in recent days, question marks remain.
Speculation surrounding US debt securities remains a major thorn in the side of the US dollar, especially following the recent downgrade of the US credit rating by Moody's.
Despite yesterday's decline, the 10-year bond remains close to the 4.50 level. Under normal circumstances, these high yields would have been a significant advantage for the US dollar and should have already led it to higher prices, but this is not happening at the moment and confirms the environment of confusion and great concern among investors.
The bigger picture of the market remains the same with the exchange rate not having any strong direction at the moment.
The European currency since it climbed to its high of 1.1575 has again come under mild doubt but on the other hand the American currency after the very good correction is struggling to continue to shine.
And today's agenda is relatively poor, so the scenario of a limited trading range has some good chances.
No any changes in my thoughts, maintaining some good possibility in the scenario that the range of variation will remain between the levels 1.11 and 1.16 for the near future, maybe with some good deviations as we observed on last week.
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