The European single currency remains close to the 1.0750 level at the beginning of the new week, as Friday, although marked by high volatility due to the announcement of new jobs in the United States, did not give any new direction to the pair.
The figures pleasantly surprised and showed that the labor sector remains one of the main pillars and one of the main reasons why the American economy maintains a much better pace than the European.
With the labor sector in the United States remaining strong and unemployment remaining low, the possibility that the de-escalation of inflationary pressures that we have seen recently may not have the same continuity comes back to the table.
This may fuel bets that the Federal Reserve will keep interest rates high for an extended period of time, which may support the US dollar.
That’s why tomorrow’s announcement on the course of consumer inflation in the United States is awaited with great interest and is capable of strengthening or not such bets.
At the same time, this is a week with meetings of most of the major central banks with Fed, Boe and Ecb to decide on the course of interest rates, but no change is expected.
Interest is mainly focused on the presidents’ statements after the decisions and whether there will be any specific messages about future intentions.
Today’s agenda is extremely light and ahead of the next few days where the agendas are extremely rich with critical announcements as well as official statements, the most likely scenario for today is for the exchange rate to remain in a narrow range with no surprises.