EUR/USD Forecast – March 07, 2017
EUR/USD has just been grinding up and down within a small range with no specific direction. The pair seems to be preparing itself for the bigger battles towards the end of the week and till that time, we could safely expect some more consolidation and ranging from this pair. There are also many geopolitical factors that seem to be influencing the moves in this pair and we believe that it would take a few days for the attention to get back on the fundamentals and the respective economic and fiscal policies.
EUR/USD Loiters Around
Yesterday, we saw the EUR/USD pair make its way towards the range highs at around the 1.0640 region and for a brief while, it looked good for more. But then the news came that one of the main candidates in the French election, who was expected to seriously challenge Le Pen, decided not to take part and this has paved the way for Le Pen to easily walk into the final round. Le Pen is considered as one of the controversial candidates in the French elections as she is against the concept of the euro and this development caused the euro to fall towards 1.0550.
Looking ahead to the rest of the day, we do not have any major news from the Eurozone or from the US and so we can safely expect the consolidation to continue for today. We have the ECB rate events and the NFP later on in the week and the market will likely consolidation itself ahead of these events.