EUR/USD Daily Fundamental Forecast – September 27, 2017

The EURUSD pair had a generally choppy day but at the end of it all, it finished lower for the day and continues to look weak. It now seems to have found some good support below in the 1.1760 region and hence we are likely to see some decent bounce from this region during the course of the day.

EURUSD Continues Move Lower

The focus over the last 24 hours was on the speech from the Fed Chief Yellen where she was expected to talk about inflation. Her comments were released earlier than scheduled on certain newswires and depending on how it was viewed, one part of the market went about buying the dollar while the other part started selling the dollar which led to good two way action which did not go anywhere for a while. But, as we had pointed out in our forecast yesterday, the dollar strength seems to be well on its way to recovery and this led to the EURUSD closing lower for the day below 1.18.

The pair had moved lower during the day on the back of sustained dollar strength which we have been seeing across the board over the last few days. This has led the pair lower and though the dollar strength continues to persist, we may see the dollar bulls taking some rest for a while which might lead to a correction of the move down in the short term. The euro seems to be trying to find a base here and though it is under pressure from the uncertainty caused by the German elections, we should see a relief rally pretty soon.

Looking ahead to the rest of the day, we do not have any major news from the Eurozone but we have the core durable goods orders data and pending homes sales data from the US later in the day. There is also talk that Trump would reveal his new tax plan later in the day as well. These events should guarantee a lot of volatility in the market.