EUR/USD Fundamental Analysis: March 17, 2017
The EUR/USD pair continued trading in a very positive note during yesterday’s trading session. The bottom barrier of the currency pair is evident within the 1.0710 range, with this particular barrier becoming evident yesterday as the EUR dropped in relation to the USD and reverting almost immediately after hitting the said barrier and is now trading at just over 1.0750 points. However, the pair’s direction towards 1.0800 is currently still in the clear and the pair’s course of action would be crucial in determining the EUR/USD pair’s move in the next few days.
The currency pair dropped slightly during the earlier part of yesterday’s session as the euro reacted to the dollar weakness during the other day. The Federal Reserve had significantly disappointed the market after it failed to give a specific timeline with regards to the schedule of its next rate hike. This has then caused the US dollar to retreat further towards 1.0700 points. However, as the trading day progressed, ECB official Nowotny stated that the European Central Bank is currently looking into the possibility of increasing its deposit rates prior to the refinancing rate, and this has give the EUR/USD pair enough room to boost itself during the latter part of yesterday’s session. The currency pair has since then surged from 1.0700 to 1.0750 points and could possibly even reach its present range highs.
There are no major news releases expected from the European Union today but the US will be releasing its consumer sentiment data, although this is not expected to induce enough volatility into the currency pair. The EUR/USD pair could possibly trade on a strong note and could even reach 1.0800 points.
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