EUR/USD Daily Fundamental Forecast – September 14, 2017

The EURUSD pair crashed lower yesterday as the dollar recovered across the board and the dollar continues to trade in a strong manner as of this writing. Though the PPI data from the US came in weaker than expected, it did not seem to have much of an impact on the dollar as the market developed a liking for it and pushed it higher against almost all other instruments. This affected the EURUSD pair which has since moved lower over the last 24 hours.

EURUSD Crashes Lower On Dollar Strength

While it could be said that Trump and his team have also been one of the reasons for the dollar to be crashing lower over the last few months, it seems that his actions are the ones that are helping the dollar now. Due to the lack of some support among his own partymen, he has been trying to reach out to the members of the opposition to drum up some support for pushing his plans and reforms through. He has managed to push the debt ceiling issue to December while there are reports that he is in touch with Democrats to push through his tax and healthcare reforms as well.

How much of that is true and how much of that would really work out is something that remains to be seen but the fact that he is working on getting support for getting his plans through, seems to be liked by the market and the dollar and they have gone about buying the dollar in anticipation of good times ahead. This pushed the EURUSD pair lower and through the 1.19 region and it now rests at the support region at 1.1875 as of this writing, looking pretty weak,

Looking ahead to the rest of the day today, we do not have much economic news from the Eurozone but the key would be the CPI data from the US which should give a glimpse of how the US inflation is doing at this point of time. If it comes out strong, we could see the recovery in the dollar continue for the short term which should push the EURUSD pair towards 1.18.