EUR/USD Daily Fundamental Forecast – March 5, 2018
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The EURUSD pair is stable and steady as of this writing with the events over the weekend not having much of an effect on the euro so far. Of course, it remains to be seen whether this is going to last for quite sometime and that too, when the London session opens but for now, the focus and the attention is on the results from the Italian election that were held over the weekend.
EURUSD Moves Sideways
The results so far, including the ones that have been officially declared and ones that are based on exit polls, indicate that there would be a hung Parliament. This is a mixed news for the Euro as it indicates that the combination of parties in Italy that were against the Euro are not going to get a majority by any chance. But at the same time, they have done decently well which indicates the mood in Italy regarding the euro and hence this is something that the people in the Eurozone would have to sit up and take notice, especially the leaders.
The euro has shown little impact of these results so far and continues to trade above the 1.23 region. As we have been saying over the last few forecasts, we have seen the pair enjoying some good support around the 1.2240 region and though it did manage to break through this region for a couple of days, it recovered and rebounded during the last couple of days of the week and this has helped the pair to move back through the support region and head higher.
On the economic news and data front, there is not much from the Eurozone today and we have the manufacturing data from the US later in the day. But this is likely to be a crucial week with many central banks including the ECB likely to have press conferences and we also have a lot of data coming up from the US, including the NFP. These are expected to impact the euro and hence, it could turn out to be a volatile week.
This article was originally posted on FX Empire