Ella 
EUR/USD is back above 1.0800 as it attempts to recover from yesterday’s modest losses in an environment where investors remain extremely cautious.
Although the macroeconomic data released yesterday were negative for the US dollar, the prevailing risk aversion sentiment in international stock markets provided support for the US dollar.
Yesterday’s announcement of initial jobless claims in the United States last week and a weaker-than-expected manufacturing ISM index have amplified concerns about the direction of the U.S. economy. Although signs of recession have not yet appeared, some question marks remain.
Although signs of a recession are not on the horizon, some question marks remain. The slight deviation in the announcement has not changed the central bank’s interest rate cut bets on the whole. The biggest probability is still that the Federal Reserve and the European Central Bank will cut interest rates twice before the end of the year.
Today’s agenda is dominated by the release of U.S. non-farm payrolls data, and traditionally any major deviations act as a catalyst for wild market moves and could change bets.
In an environment where risk aversion is likely to persist and the interest rate differential between the dollar and the euro does not appear to be narrowing, the dollar has reason to remain in focus.
On the other hand, European currencies proved once again during yesterday’s session that they are incredibly responsive.
Having failed to find a good price to buy USD above 1,09, my thoughts remain on staying put and I will consider buying EUR around 1,06.
