The EURUSD pair had a quiet day on Friday with some choppy trading on either side of 1.18 during the course of the day. This kind of action was to be expected in general, as it was the last day of the month and with a large amount of data scheduled to be released in the upcoming week, it is only natural for us to expect the traders to wait for the news and position themselves accordingly rather than committing early.
EURUSD Likely to Consolidate Today
The pair has started the day today in a bearish manner as the dollar has strengthened across the board since the beginning of the day. This is in contrast to the action on Friday when the pair was moving higher in a slow and consolidative manner for most of the day and it looked as though the euro had shrugged off the period of correction and looked set to move higher again in due course of time. But so far, there does not seem to be any sign of the correction being over as yet and the dollar rebound continues as of this writing.
We are unlikely to have too much of action today as well as the market awaits the important news ahead in the week which includes the employment report from the US as well. The action that we are seeing now in the markets is due to the independence voting that we saw in Catalonia in Spain over the weekend. The government there has said that 90% of the people who voted had done so for independence and this is despite the large scale crackdown from the Spanish government which tried to ensure that the voting did not take place. The signs are that the move towards independence would begin this week.
Looking ahead to the rest of the day, the market would be watching the developments emanating from that region. We have the ISM Manufacturing PMI data from the US later in the day but that is unlikely to have too much of an impact on the EURUSD prices considering the bigger news ahead.
This article was originally posted on FX Empire
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