EUR/USD Fundamental Analysis: September 30 2016
Today has been in favor for EUR/GBP instead to EUR/USD. Traders have been confused to the movements made by Euro but it'll be much clearer if they already inferred the factors that cause such complicated actions. Moreover, major news within the U.S and Euro does not have make any impact to the pair rather than it's about the heavy transactions flow at the end of the month by which the euro is associated to.
Many factors are to be considered in the end flows such as the membership fee of the UK to EU that are required to be paid every end of the month or depending on the level of the liquidity and volatility in the market. Another driving force is the activity of euro yesterday since there are large number of EUR buying and selling.
The euro and greenback attempted to bid within the upper side where it attained a high resistance around 1.1250, however, the news regarding the Deutsche bank's problem caused the pair to establish a downward slope.
Due to this event, the market got panic because there is a tendency for a risk appetite wherein brings positive strength for the USD. The pair's trading range for today intersects the 1.1180 and 1.1250, seeing that the euro have suffered from a high and low positions brought by the end month flows.
It is important for the traders to be cautious about the effects that the bank company would bear. It is safer to execute your trades within the extreme ranges.
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