The euro has a crossroads with an approach to an exchange rate of $ 1.2

The euro is witness to a wave of climbing that approaches a detailed level that can determine the direction in the coming period, as it is seen by reaching a level of $ 1.20 as a possible obstacle to the momentum continuation, or a starting point to new heights. This level has remained the focus of the attention of strategists and traders for several months. After climbing the United European currency over the past three days by about 1.6%, it is now approaching the $ 1.17 level, an extent that records the highest nominal trading volume of emerging options so far this month, according to the data of “Deposit Trust & Clearing Corporation”, making it a potential turning point. And if the euro manages to penetrate the $ 1.17 level and the stability above, it can pave the way for the rise of about $ 1.20, a level not recorded four years ago. If it does not overcome this barrier, it is likely that any subsequent movements are preceded by a wave of profit or a balance in liquidity flow. In this context, the HSBC strategy at the end of this year increased their expectations to $ 1.20 instead of $ 1.15, in light of their weights that were very on the performance of the US dollar in the coming months. On the other hand, dance bank A/s. Last month, their expectations that the euro would reach $ 1,20 during a 12 -month period, while Deutsche Bank AG expected the European currency to reach this level by December. Factors that forced the euro to rise on the euro record on Tuesday to rise to the $ 1.1641 level have its strongest daily performance during daily trading since October 2021, supported by falling geopolitical tension and poor US economic data, which motivated a new wave of demand for the United European currency. This increase has come to declare a ceasefire between Iran and Israel, in addition to the conservative statements made by the president of the US Federal Reserve Jerome Powell. Capital markets expect a total reduction in US interest rates by 59 basis points by the end of the year, compared to only 25 basis points expected by the market by the European Central Bank. Philip Lin, the chief economist of the European Central Bank, said on Tuesday that efforts to re -complete the 2% level, despite the ongoing price pressure. Market confidence in the euro reflects the options markets that the investors’ continued conviction of the euro strength of the euro, as the risk solution index, which measures the difference in pricing and sales contracts, saw the fourth highest increase in more than three years, indicating a strong return on the upward trends in the market moral. This shift comes shortly after the support the dollar received due to the high oil prices. The general image is still prone to positive, as the Diposetori & Corring Corporation data reveals that more than 60% of the nominal volume of Euro options contracts this month tended to buy contracts. The euro won Wednesday’s trade unchanged near the $ 1.1610 level.