Yahoo Finance EUR/USD Daily Fundamental Forecast – November 17, 2017
The EURUSD has been having a roller coaster ride over the last couple of days with the pair moving up and down with large volatility as the global sentiment on the dollar continues to wax and wane with no specific direction. The dollar has been trying desperately to convince the market that it is indeed the currency to buy in the short term but so far, the market is having none of it. Though there have been periods of dollar ascendancy, they have been quickly sold into.
EURUSD Turns Choppy and Volatile
This has managed to keep the dollar under pressure and the euro has been able to quickly capitalise on that. The only thing going in favor of the dollar is the continued belief that there would be a rate hike from the Fed in December but the market is yet to convince itself to fully price that in. There have not been any specific signs of that as yet, with Fed members continuing to vacillate and the incoming data being steady at best.
This has made the dollar vulnerable to any kind of news or data and hence is clearly on the backfoot. So, over the last 24 hours, we have seen the euro move down to the 1.1750 region and we are now seeing it retrace its entire move down. The latest trigger has been reports of continue development of missiles from North Korea and the continuing investigation on the allegations of Russian intervention in the US Presidential elections. A combination of these has been enough to push the dollar lower.
Looking ahead to the rest of the day, we have a speech from Draghi during the London session but he is unlikely to touch too much upon the monetary policy which means that we are likely to see more choppy action. Today is the last day of what has been a volatile week and hence traders would need to be careful about low liquidity later in the day.
This article was originally posted on FX Empire
