The EURUSD has gained some volatility since Friday on the back of the varying strength of the dollar during this period. While it was all about the dollar weakness on Friday, it has been about the dollar strength today and this has led to some good two way action in the pair which has helped to wake the traders up from their deep slumber. Most of last week was spent in a very tight trading range which made it a difficult time for the traders.
EURUSD Gains Volatility
The pair moved towards the 1.1680 region on Friday on the back of the news that the tax reform cuts for the corporates in the US would be delayed by a year. This was a setback for the dollar which had been gaining over the last couple of weeks in anticipation of these tax cuts. The delay in their implementation led to a slight sell off in the dollar which helped the pair to move up on Friday.
But some of those gains have been reversed today as the Fed member Harker has said that he favors one more rate hike this year and 3 next year. The rate hike in December from the Fed is something that the market is looking forward to eagerly and this hawkish statement from a Fed member has helped to set up the dollar nicely for the week ahead. The pair has since fallen, due to these comments, just below the 1.1650 region and is likely to stay under pressure for the short term.
Looking ahead to the rest of the day, we do not have much news from the Eurozone or the US which is pretty much expected on a Monday. There are a range of events and news lined up for the rest of the week though, and this should help to bring in a bit more volatility in this pair during the week.