The euro has been trading in a steady manner since the morning today. It seemed to weaken during the course of the day on Friday but it has since managed to hold on to its support in the 1.22 region and has since bounced off the support and moved higher and the bounce continues today as well. There have been some news floating around in both the US and the Eurozone and these fundamentals have helped to bring in good volatility in the pair.
EURUSD Continues in Range
But this volatility has not been enough for the pair to push off the range in either direction and that is the reason why we are seeing the pair trade in the tight range between the 1.22 and the 1.23 regions over the last couple of weeks. The US is facing a government shutdown as the passage of the bill has been blocked in the Senate through voting. It is expected that another voting on a temporary bill is likely to take place during the course of the US session but so far, the impact of this on the dollar seems to be minimal as the US has faced such issues many times before over the last couple of years.
This only continues the troublesome times for the Trump administration and hence it is no surprise. In the Eurozone, we have reports that say that the talks would continue between Merkel and the SPD party and this has helped to keep up the hopes of a coalition being clinched in the short term. This should help to keep the euro buoyed during this period. We also have the ECB press conference later in the week and the market is likely to wait in anticipation of what the ECB has to say during that.
Looking ahead to the rest of the day, we do not have any major news from the Eurozone or the US and this is something that is expected on a Monday in the second half of any month. There are few fundamental and political issues being sorted out on both sides and that should keep the volatility going.
This article was originally posted on FX Empire
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