Yahoo Finance EUR/USD Daily Fundamental Forecast – October 17, 2017
The EURUSD pair weakened during the course of trading yesterday after looking as though it might move higher on the back of weak data from the US on Friday. The retail sales came in strong and the CPI came in weaker than expected and this had led the EURUSD pair to challenge its range highs at 1.1870 once again but since that period, the pair has been only moving lower and lower.
EURUSD Weakens
The weakness in the pair had sent in towards the end of the day on Friday and what we saw on Monday was just a continuation of that move. The dollar gained strength as the situation in the Korean region improved with no sign of a missile launch from North Korea anytime soon, though the markets had been expecting one. This helped the dollar to move higher slowly and steadily across the board during the first half of the day.
The pace picked up in the US session as it increasingly looks as though John Taylor might be the replacement for Yellen for the post of Fed Chair. Taylor is known to be a hawk and he has been highly supportive of rate hikes from the Fed and the fact that Trump seems to be favoring him in the race for the chair is hawkish for the US dollar and this fact helped the dollar to pick itself up against several currencies and this has since pushed the EURUSD lower and below the 1.1780 region as of this writing.
Looking ahead to the rest of the day, we have the ZEW economic sentiment from Germany but apart from that, we do not have any major news from the US or the Eurozone for the day. We expect the dollar strength to continue for the day today which should eventually see the EURUSD pair move towards the lows of its range at 1.1700 region.
This article was originally posted on FX Empire
