EUR/USD Daily Fundamental Forecast
The dollar had a very bright start to the month of March and the much needed boost came from a section which had also been the reason for all the fear and uncertainty so far, which had been causing the weakness in the dollar over the past few weeks. Ever since Trump took over the reins, the market had been sceptical about its policies and what he is likely to achieve and this uncertainty had kept the dollar under pressure. This had helped to keep the EURUSD afloat. Though the fundamentals were in its favor and the strength was burning underneath for everyone to see, the dollar could not take charge as the investors could not be easily convinced about its viability.
EURUSD On The Rocks
But the markets have begun to get used to his team and with each passing day, the investors and corporate seem to like him more and more which is evident in the way the stock markets have responded to him. Yesterday, in his speech, he announced that he is planning to bring in massive tax cuts for corporate which will make them even more competitive around the world. He also laid out plans for increasing spending which was one of his campaign promises that was loved by the markets. This pushed the EURUSD prices lower.
The EURUSD crashed through 1.0600 and it trades at 1.0550 as of this writing and it looks very weak, capable of going down even more. If this strength continues, as it is likely, we could see 1.05 in this pair very soon.
Looking ahead to today, it is the first day of a new month and we have the manufacturing PMI data from the US today. We expect the dollar strength to be the underlying theme for the markets for the rest of the day.