EUR/USD Daily Fundamental Forecast – July 26, 2017
The EURUSD corrected a bit once again yesterday as the dollar recovered across the board towards the end of the day. The dollar was on the backfoot during the early part of the day and this helped the pair to move towards 1.1712 which was almost the same as the highest level reached over the past 2 years but then a lot of selling began in the area which caused the pair to fall below 1.17 during the day.
EURUSD Awaits FOMC
Towards the US session, we saw a strong consumer confidence data from the US and this helped the dollar to recover a bit. Helping the dollar further was the news that the Republicans had voted to restart the debate on healthcare which was a sign that Trump was trying to gain back support for the bill and again raises the possibility that the bill could be passed. This was enough for the dollar to stage a mini recovery and this helped the pair to move down towards the 1.1640 region where it is trading as of this writing.
The dollar had been battered over the last few weeks due to the administrative mess that the Trump team found itself in and also due to the lack of support from the incoming economic data and also the Fed. We have to see whether that is still going to be the case today as we look forward to the FOMC meeting minutes later in the day. The market is also in a consolidation phase during this time in anticipation of the meeting minutes which is the only solid economic data for this week.
The meeting minutes are to be released late in the US session and the markets and the traders would be watching it closely for hints on when the next rate hike is likely to be. The weak incoming economic data has meant that the rate hike is likely to be delayed but still a large part of the market believes that it will be sometime this year. The minutes will give an idea of when that will be.
This article was originally posted on FX Empire