EUR/USD Daily Fundamental Forecast – October 9, 2017

The EURUSD pair had a choppy day on Friday on the back of some mixed data from the US but the bulls should take heart from the fact that the pair managed to close near its highs which should give it some momentum during trading today. It has also started the day today in a strong manner and this should keep the euro well bid during the course of what is likely to be a slow day.

EURUSD Moves Higher

The market was waiting for Friday and all the news that would be released during the US session and the price action on that day reflected the mood of the market. The pair did not move much during the first half of the day as the market waited for the important pieces of data in the form of the NFP employment report and the wages data. The NFP report missed expectations by a long way as it came in the negative while the wages data showed an increase which is something that the market was expecting.

The strong wages data and the fact that the previous NFP numbers were revised higher meant that dollar became well bid for a brief while after the news and the pair fell towards the 1.1680 region during this period. But then, the market began to realise that the increase in the wages numbers could be due to the hurricanes that hit the US which increased the work and also made people work overtime. This realisation overturned the sentiment for the dollar and it began to sell off.  This helped the EURUSD pair to climb higher and close the week comfortably above the 1.17 region.

Looking ahead to the rest of the day, it is a holiday in the US for today which means that the moves are likely to be pretty slow and the volatility would be less. We can expect the EURUSD pair to continue to stay bid during the course of the day and consolidate on either side of 1.1750.