EUR/USD Daily Fundamental Forecast – December 1, 2017

The EURUSD pair continued to trade in a strong manner over the last 24 hours as the strength of the dollar waxed and waned during the course of the day yesterday. This helped the pair to push through the 1.19 region during the day where it continues to trade as of this morning. The day ahead is going to be interesting with the focus continuing to be on the dollar.

EURUSD Still Looking Bullish

The headlines for the day yesterday was dominated by the dollar and the tax reform plan bill which continues to pass through the Senate. Though Trump and his team can be confident that the bill would pass through, the delay in the process has been weighing on the dollar during this period. The bill was expected to pass by the middle of the week but it has got delayed due to various reasons and now we are in the last day of the week and the bill is yet to be passed, though it is expected to be done today.

The passing of the bill is likely to give a small and short term boost to the dollar but the underlying strength of the euro is there for everyone to see. Also, the tax reform bill is almost fully priced into the markets at this point of time and hence we do not expect any big run from the dollar on passage of the bill. It remains to be seen whether the euro would continue to gain in strength and push towards the 1.20 region which seems to be the next obvious target for the bulls.

Looking ahead to the rest of the day, we do not have any major news from the US or the Eurozone for the day with the tax reform bill likely to continue to dominate the upcoming day for now. The other point of interest would be whether the euro bulls would continue to push the euro higher.