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EUR/USD Daily Fundamental Forecast – June 26, 2017

By:
Colin First
Published: Jun 26, 2017, 04:00 UTC

There has not been much action in the markets as of this morning and in that aspect, it can be said that it has been a typical Monday morning. It is the

EUR/USD Daily Fundamental Forecast – June 26, 2017

There has not been much action in the markets as of this morning and in that aspect, it can be said that it has been a typical Monday morning. It is the last week of the month and as we have been saying for the past few days, the economic and fundamental drivers dry up during the second half of the month and this is one of the reasons why the volatility is very less in the markets.

EURUSD To Consolidate

We have also seen that over the past few weeks, the tweeting of Trump has become less and this is one less surprise that the markets have to deal with. The markets have been very jumpy about this tweeting and the lack of any market changing tweets from him over the last few weeks has helped the EURUSD to settle down into a period of consolidation and ranging within a tight range of around 200 pips over the last few days.

EURUSD Hourly
EURUSD Hourly

We did see the pair rise on Friday on the back of some dollar weakness across the board during the day. The dollar weakness was brought about by the weak data from the US, though the data was not too important to bring in major volatility in the markets. It should be a matter of concern for the dollar bulls that despite the claims to the contrary from the Fed members, the data so far this month, from the US, has continued to show some serious weakness in the economy. The Fed has chosen to ignore it so far, in the hope of a quick turnaround, but it remains to be seen whether the incoming data in the new month justifies this.

Looking ahead to the rest of the day, we have the ECB President Draghi making a speech late in the day but his tendency has always been not to speak about the economic or monetary policies in a majority of his speeches and with more speeches from him scheduled for later in the week, we doubt whether he would say anything significant today. This would mean some more consolidation and ranging in the EURUSD pair on either side of 1.12.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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