Τhe single European currency is in mild pressure environment for the fourth consecutive day trying to defend the 1.09 level which looks ready to break down.

Despite the downgrade of the US  credit rating two days earlier The US dollar remains in the spotlight as pressures on international stock markets lead investors to the US dollar, which traditionally functions as a safe-haven currency.

While the preliminary figures for the labor sector in the United States which were announced yesterday pleasantly surprised and also supported the American currency.

Despite the mild losses suffered by the European currency It does not appear to be under threat of a collapse for now and the exchange rate most propably will remain within a broader trading framework between the 1,05 – 1,14 levels for the coming months.

Just as a few weeks earlier it had managed to develop a mild bullish Momentum which has taken it above the 1.12 level so this momentum has been challenged for days now resulting in a return of more than 300 basis points from the recent highs.

Although there are currently no signs that the European currency can soon return to the upward momentum, nevertheless, signs of reactions remain in play, something that the European currency achieves with relative fidelity.

Today’s agenda is quite interesting with several fundamental economic news to be announced, But they certainly cannot replace tomorrow’s announcement on new jobs and unemployment in the United States.

As the possibility of a downside break of the 1,09 level remains on the table my thinking remains to buy the European currency above the 1.08 level aiming for a good reaction.