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EUR/USD Daily Fundamental Forecast – November 23, 2017

By:
Colin First
Published: Nov 23, 2017, 02:54 UTC

The EURUSD was expected to have a quite day yesterday, maybe rocked a bit by the FOMC minutes but with the long weekend ahead, not much action was

EURUSD Thursday

The EURUSD was expected to have a quite day yesterday, maybe rocked a bit by the FOMC minutes but with the long weekend ahead, not much action was expected from the markets but turned out otherwise. The dollar lost its steadiness and it was a slow move lower for the dollar during the course of the day which only accelerated following the release of the FOMC minutes.

EURUSD Moves Higher on Weak Dollar

The EURUSD had begun the day quietly above the 1.1750 region and not much action was expected to happen till the release of the FOMC minutes. But with the rate hike in December almost confirmed, there was not much anticipation from the markets regarding the minutes as the Fed was expected to continue to maintain its usual stance. But the euro began its slow grind higher right from the beginning of the day and continued to move higher during the course of the day.

EURUSD Hourly
EURUSD Hourly

Then came along the FOMC minutes which turned out to be more dovish than what was expected. The rate in December is already almost fully priced into the markets but the outlook from the Fed for further rate hikes was the real point of interest and their outlook was not very positive. Few members continued to believe that inflation was not upto the mark which would mean that further rate hikes are likely to get delayed unless inflation picks up and the incoming data supports it. This dovishness led to a round of weakening in the dollar which helped to push the EURUSD pair through the 1.18 region and it trades comfortably above that as of this writing.

Looking ahead to the rest of the day, it is the beginning of the long weekend in the US on account of Thanksgiving and hence there is no economic news scheduled to be released from the US as well as the Eurozone for today. Expect some boring consolidation with a bullish bias during the course of the day.

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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