EUR/USD Daily Fundamental Forecast – June 6, 2017

The EURUSD couldnt fit into any specific theme yesterday as the pair moved in a directionless manner for most of the day yesterday. One thing was clear though. The pair refuses to buckle down even in front of some dollar strength and it continues to trade near its range highs and it has only got even stronger as of this morning and continues to trade just above 1.1270 as of this writing.

EURUSD Likely to Consolidate

With a range of news being scheduled to be released later in the week, the traders have chosen to take a mild break and not risk pushing the pair in any specific direction and that is why we have seen the markets being so slow and not moving much over the past 24 hours. The dollar has been steady at best and with not much fundamental drivers around as yet, it is likely to remain so for the next one or 2 days.

The market waits a super Thursday as we have the UK elections, the ECB rate decision and press conference and also the testimony by the former FBI director and each of these events is likely to bring in a lot of volatility into the markets. The ECB is expected to be on hold and though the economic data has been improving of late, it may not want to sound too hawkish as the ECB members are worried about a strong euro. Then we have the risk event of the UK polls which is still in the balance with each poll predicting a different result. The cracker could be the Comey testimony where he is likely to tell the Senate whether Trump interfered with any investigation.

Looking ahead to the rest of the day today, we do not have any major economic news from the US or the Eurozone but with all the markets open, we should see some good 2 way action. But with 1.13 acting as a strong selling region, we doubt whether the EURUSD pair would be able to make much headway.