EUR/USD Daily Fundamental Forecast – September 7, 2017

The EURUSD pair has been consolidating and trading within a tight range since the beginning of the week and the case was the same over the last 24 hours. But all that could change during the course of the next 24 hours as the focus and the attention of the markets would be clearly on the euro for the day and also on what the ECB is going to do and say in the short term.

Euro Waiting on the ECB

The pair has been loitering above the 1.19 mark over the last 24 hours with no sign of any specific direction. The markets in general, also seem to be on a consolidation mode as the investors and traders wait for the dust to settle. The global risks and tension continue to be on the high side with a part of the market predicting an impending strike from North Korea and this has been putting a lot of pressure on the dollar since the beginning of the week.

But for today, the focus and the star is likely to be the euro as the ECB makes the rate announcement and also follows it up with a press conference. The ECB is going to keep the rates stagnant but it is what Draghi is going to say at the press conference, that is going to determine the direction for the euro in the short term. The ECB has been increasingly getting wary of the strength of the euro and though they cannot change or reverse the fundamentals, they could possibly talk down the euro in a bid to control its strength. If Draghi does do not, then we could see the EURUSD pair moving below 1.19 and heading towards 1.18 in the short term. If he does not, then we could see the pair revisiting the highs at 1.2070 once again.

Looking ahead to the rest of the day, we do not have any other major news from the Eurozone or the US and hence the attention would be on the developments in the Korean region and also on the ECB for the day.