Vasilis Tsaprounis
Independent Analyst
The single European currency remains between 1,0750 - 1,08 levels after moving little higher on Thursday in the wake of increased US jobless claims.
Once again the European currency took the opportunity to react taking advantage of a disappointing announcement from the other side of the Atlantic.
However, I remain skeptical as to whether the European currency is capable of sustaining strong bullish momentum and re-approaching the 1,10 levels relatively easily.
Τhe whole game remains centered around the prospect of a rates cuts and as long as the US dollar maintains a much higher rates the European currency will face difficulties in moving much higher.
The bets for now remain the same with the European Central Bank most likely to change monetary policy with the first cut in key rates in June while Fed is likely to do so towards the end of the year with some bets placed for September.
Today's agenda is quite interesting, with several statements by Fed officials and University of Michigan consumer confidence index stands out.
Αs the exchange rate looks for catalysts to take some direction any announcement that will be different from the estimates will affect the pair.
As long as there will no disappointments on the other side of the Atlantic and statements from Fed officials will remain hawkish the US dollar may make an effort to return to the fore.
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