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EUR/USD Daily Fundamental Forecast – September 6, 2017

By:
Colin First
Published: Sep 6, 2017, 03:41 UTC

The dollar got hit all across the board yesterday as the Fed members, who made speeches, were all uniformly dovish about the economy and also about the

EURUSD Wednesday

The dollar got hit all across the board yesterday as the Fed members, who made speeches, were all uniformly dovish about the economy and also about the timing for the next rate hike from the Fed. This did not go down well with the traders and investors who began another round of selling of the dollar which helped the EURUSD pair to climb through the 1.19 region.

EURUSD Higher on Weaker Dollar

The euro has been trading in a steady manner since the start of the week but with the first day of the week being a holiday, the focus was on the euro and the dollar when the US markets returned back from their long weekends. There was not much action during the Asian and the London market hours but there was a lot of action during the US session, especially with the speeches from the various Fed members bringing in a lot of volatility.

EURUSD Hourly
EURUSD Hourly

There was not much of economic news around and hence it was left to the speeches to bring in some volatility and they did bring in weakness in the dollar as they were dovish about the outlook of the US economy. Also, the prices of gold and oil also increased during the course of the day and this added to the pressure on the dollar as the day progressed and this helped the EURUSD pair move back to the highs from couple of weeks before. Considering that it was a bearish close for last week, this region could be considered as crucial as a break through this region could target the highs around 1.2070 again.

Looking ahead to the rest of the day, we do not have any major news from the Eurozone for today but we have the ISM Manufacturing data from the US. This is not likely to bring in too much volatility but we see the dollar index at a crucial juncture which could make or break the dollar for the short term. We have to wait and see whether it breaks or whether there is a recovery in the dollar.

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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