EUR/USD Daily Fundamental Forecast – March 24, 2017

The EURUSD pair was trading sideways for most of the day yesterday as the markets were in a wait and watch mode to see how the healthcare bill in the US fares when it goes for voting. Most of the traders believe that this bill is very important to Trump personally and would also like to think of it as a referendum of sorts on the functioning of Trump but nothing could be farther from the truth. Some part of the market also believes that the Trump administration could be in danger if the bill does not get the required numbers but again, this is not how it is going to pan out.

Euro Consolidating Ahead of US House Vote

The fact is that the Trump administration is going to continue about its ways despite how the healthcare bill fares and it is only that it will help to clear up some confusion surrounding healthcare if and when the bill passes. It was expected that the bill would be put to vote yesterday and that is why EURUSD chose to trade within a very tight range but the discussions and the negotiations dragged on much longer than expected and the vote could not happen yesterday.

As of today, we hear reports that the bill would be put to vote today and that the Trump administration is done with negotiations and the voting would happen irrespective of how it is likely to fare. So, till that time, leading up to the voting, we can expect the EURUSD pair to continue to trade sideways as the markets wait to see how the voting would shape up.

We also have the Fed member Evans speaking later in the day but we believe that he would have very less impact on the dollar. It all depends on the voting and if the healthcare bill does get passed, it could be positive for the dollar and we could see EURUSD breaking through 1.0750 and head towards 1.0700 while if the voting fails, we should then see another test of the region between 1.0800-0830 and this time, it might be good enough to push through.