EUR/USD Daily Fundamental Forecast – November 1, 2017

The EURUSD pair continued to trade within a tight range as the traders and the investors seem to be waiting for the bigger scheduled news releases later in the week. The pair has barely moved 40-50 pips since the beginning of the week and even the month end currency flows, which have now got over, have had little effect on the pair as it continues to trade in a slow and low manner.

EURUSD Continues to Range

There was not much by way of fundamental drivers, as far as the euro was concerned and there was not much in the form of news releases from the US as well as Eurozone and this has led to a situation where the euro has had barely any kind of incentive to move in any specific direction. But there are bigger news ahead and these are likely to push and pull the pair and lead to a lot of volatility. The fact that there has been a lot of consolidation points to a lot of volatility if and when a breakout happens.

We have the FOMC minutes later in the day today and this will be watched very closely for any signals of an upcoming rate hike from the Fed in December. So far, the incoming data has been steady and it remains to be seen if the Fed deems it as enough to bring in a rate hike. The dollar bulls would certainly like to believe so. We also have the ADP employment report which is a precursor to the NFP which will be released later in the week and this should point to where the US economy is headed.

We also have the announcement of the Fed Chair tomorrow and it is generally believed that Powell would be the next Fed Chair who will succeed Yellen. The market is likely to have a knee jerk reaction in immediate response to the announcement though it is unlikely to last long as the market and economic fundamentals will have to take over ultimately. It is due to this host of events and data that are scheduled later that the EURUSD pair has been holding on tightly to its ranges and depending on the data and how the events pan out, the dollar is likely to be volatile.