EUR/USD Daily Fundamental Forecast – November 27, 2017
The EURUSD pair was in a tearing hurry over the last 3 days of the week and it also closed the week in a pretty strong manner above the 1.1920 region. It continues to trade strongly as of this writing though there has been a slight correction in the prices this morning. It remains to be seen how the rest of the day pans out as the move higher in the pair was brought in during times of low liquidity.
EURUSD In Tearing Hurry
The dollar weakened across the board since the release of the FOMC minutes which was more dovish than the market had expected it to be. While the market was hoping to see some indication on the future rate hikes in 2018, the Fed members chose to put the onus on the incoming data and said that the rate hikes would be contingent on the data coming in strongly. With Yellen also leaving at the beginning of the year, the market was led into uncertain times for the dollar and this led to a dollar sell off which helped the euro to push higher.
The pair rose by close to 200 pips but many of the traders are still sceptical of this move as most of the move was made during the holiday in the US. It remains to be seen how the US traders would react when they come back to their desks later in the day today and they may chose to take profits or buy back some dollars which could lead to a bit of correction in the pair. This is what the traders should protect themselves against.
Looking ahead to the rest of the day, we are a bit light on the economic calendar with no major news from the US or the Eurozone. So we can expect the focus of the attention to be firmly on how the euro reacts to the re-opening of the trading in the US after the long weekend. We expect a bit of a correction atleast and if the correction is stronger than expected, then be ready for a sell off.
This article was originally posted on FX Empire