EUR/USD Unaffected by CPI Data

The EURUSD pair continued to trade in a tight range and consolidate as there were not many fundamental drivers during the course of the day on Wednesday. It was the middle of the week and the focus was more on the BOC and the CAD than on the dollar and that is why we saw the pair continue to range. This is likely to continue in the short term.

EURUSD Still in Range

The pair has been caught in a range over the past several weeks and despite various developments in the Eurozone and the US, the traders have found it difficult to push the pair through the range on either side. On the one side, we have the economic data from the Eurozone which has been sliding lower and unable to reach the peaks that we had seen towards the end of the last year. On the other side, we are seeing the dollar weak and choppy as well despite a hawkish Fed promising rate hikes.

These rate hikes have been well anticipated over the last few months and have been priced in and hence the traders are not surprised when the hikes do come in. This has helped the dollar to remain choppy during this period with the geopolitical developments like the war in Syria also tending to keep the market in tenterhooks. All the above have contributed to the pair tending to range and consolidate rather than being able to breakout in either direction.

Looking ahead to the rest of the day, we are in the second half of the month and this is the time when the release of economic data begins to dry up slowly as the market looks towards the end of the month and a new month. We do not have any major news from the US or the Eurozone for today. The weak Final CPI data from the Eurozone yesterday failed to have much of an impact on the pair.