Yahoo Finance EUR/USD Under Pressure As It Falls Below 1.18
The EURUSD continues to trade in a pretty weak manner and looking ahead to the rest of the day, we expect the same to continue as it is a holiday in many of the markets around the world. The dollar strength seems to be here to stay and hence we believe that the euro would continue to weaken towards the 1.15 region.
EURUSD Below 1.18
The euro has also been under pressure over the last couple of weeks due to the fact that the incoming data from the region has been pretty weak. This has increased talk that the QE would continue for longer than what was originally expected and this has also led to the weakening of the euro as there would be a lot of printing of cash from the ECB to sustain this program for long and as in any such situation, the currency would be directly affected due to this reason. We expected some sort of rebound from the region around 1.18 but that has not happened so far.
The market was looking closely at the end of the week price for the pair last week but the fact that the pair closed the week below the 1.18 region points to further weakness in the pair in the coming days which should lead the pair towards the 1.15 region in due course of time. We are moving towards the end of the month when the economic news dries up but the focus of the markets for this week would be firmly on the dollar as the FOMC meeting minutes would be released.
The market would be looking forward to see what the Fed thinks about the current state of the US economy and whether they would be able to give out a timeline for further rate hikes. If they are hawkish, then we are likely to see even more dollar strength which should push the pair towards the 1.15 region.
This article was originally posted on FX Empire
