EUR/USD Fundamental Analysis: January 24, 2017
The EUR/USD pair continues to exhibit a strong trading streak as the USD continues to lose its value. The USD has recently been showing weakness and has been consistently dropping in value in spite of initial expectations that the USD will be increasing in value. The market is still unsure on how to approach this recent activity from the USD, although the Fed has already announced that it will be hiking its interest rates at least 2-3 times for the rest of 2017. This particular bit of news should have created an upward support for the US dollar and should be good news for the US economy as well, but then again the Trump administration has just come in, and in terms of fiscal, trade, economic, and particularly foreign policies, the international market is still uncertain on Trump’s stance, and this is why a lot of investors are still somewhat hesitant to invest in the reserve currency.
As a result, the EUR/USD pair is now about to enter a very critical region of 1.0800-1.0840 points and the market will be monitoring the currency pair’s movement within this range, especially if the currency pair will be undergoing a major correction or otherwise.
For today’s trading session, Germany and France will be releasing their respective PMI data, while the UK will be releasing today the SC ruling with regards to the country’s EU membership. This particular bit of news is expected to affect the UK economy as a whole, and will ultimately have an indirect impact on the direction of the euro. As the market is expected to be subject to heightened volatility in the coming days, traders are advised to ensure tight stop losses for their trades.