EUR/USD Daily Fundamental Forecast – September 19, 2017
As mentioned in our forecasts yesterday, the EURUSD pair continued to trade in a consolidative manner within a tight range over the last 24 hours as the markets searches for some news or fundamentals to cling to and move in a specific direction in due course of time. The lack of news or fundamentals has reduced the trading to a tight range and this is likely to continue today as well.
EURUSD Consolidates Ahead of FOMC
The first day of a week is generally a very slow day in the markets as the traders return to their desks and evaluate their positions and the market before deciding on which day to go. There are also lack of fundamental drivers in the markets on Mondays as the news dries up during that day. So, the main driver on such days are the events that happened over the weekend but with this weekend also being a dry one with no news forthcoming, there was not much action in the European markets as the EURUSD pair traded within a 70 pip range for the day.
The focus of the markets this week would be on the speech from Trump today at the United Nations where the traders would be seeing whether he launches some vitriol against countries like China and North Korea. Even if he does, the effect on the markets is likely to be limited while the focus would remain on the FOMC later in the week. The Fed is expected to be hawkish by the dollar bulls and this is likely to keep the dollar bid in the leadup to the announcement.
Looking ahead to the rest of the day, we do not have any major economic news from the US or the Eurozone for the rest of the day and hence we do not expect any major movements in the markets as yet. We could see some positioning later in the day as the market and the traders prepare themselves for the FOMC tomorrow.
This article was originally posted on FX Empire