EUR/USD Daily Fundamental Forecast – April 3, 2018

The stocks slid in the US yesterday and this had an impact on the rest of the markets, especially considering the fact that it was a holiday on account of Easter Monday in many parts of the world and hence the liquidity was low in general. So, all it needed was a push in the right direction for the stocks to fall.

EURUSD Lower

That push came in the form of a continued attack on Amazon by the US President Trump in his twitter feed. He has been launching a tirade against Amazon for its part in putting the offline retailers under pressure and though no concrete action has been taken as yet, the threats have been enough to spook the markets. This threat and uncertainty has been leading to funds being diverted from the stock markets and into the safe havens like the dollar and this has helped the dollar to rebound.

But not much can be read into the recovery of the dollar as it has been taking place under low liquidity and also due to the fact that the euro continues to stay within the large range that it has been trading all this while. It remains to be seen whether this would begin to have a snowball effect and start placing pressure on the euro but so far, there have been no such signs.

Looking ahead to the rest of the day, we are likely to see the traders in Europe come back to their desks after the long weekend and this could increase the demand for the euro. There is not much news from the US or the Eurozone for the day but we believe that the market would consolidate and wait for the employment data from the US later in the week before it chooses its direction for the short term.