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EUR/USD Daily Fundamental Forecast – June 29, 2017

By:
Colin First
Updated: Jun 29, 2017, 02:59 UTC

It was a volatile day of trading in the EURUSD pair as the spate of news continue to flow in from the different parts of the world and this has been

EUR/USD Daily Fundamental Forecast – June 29, 2017

It was a volatile day of trading in the EURUSD pair as the spate of news continue to flow in from the different parts of the world and this has been pushing and pulling the various currencies in different directions. This should come as a surprise to a lot of traders who would have expected the last week of trading in a month to be a calm one with lots of consolidation and ranging. But the spate of speeches from various Central bank leaders has ensured that it is anything but that.

EURUSD Continues Higher

Yesterday, we saw a clarification being issued from the ECB which hinted that the markets might have over reacted to his comments on the previous day which pushed the euro higher and there was a belief that he may not have been as hawkish as the markets would like to believe. This caused the euro to correct and from above 1.1350, it crashed through below 1.13 for a brief while. Then it was the turn of the pound to go on its journey in a rocket as the BOE Governor Carney pushed in some hawkish comments to boost the pound. This pushed the pound higher and the roles were reversed from the previous day as the euro was helped higher by this move in the pound.

EURUSD Hourly
EURUSD Hourly

This helped the EURUSD pair to erase all of its losses from the first of the day and with the dollar continuing to trade in a weak manner and with month end flows dominating, we are seeing the euro moving from strength to strength which is what we had indicated once the pair broke through 1.13 the day before. It trades just above 1.14 as of this writing and it is set to end the week and the month in a strong manner.

Looking ahead to the rest of the day, we have the GDP data from the US and it is likely that all the incoming data from the US will be watched very closely to confirm whether the bad data in recent times was just a blip as the Fed had asked the markets to believe.

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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