The US and its allied launched a missile attack on specific targets in Syria but the impact of that on the market has been pretty much limited so far. For the last week or so, there has been a lot of talk about the US entering into the war in Syria and the situation getting escalated and this has led the markets to be choppy.
EURUSD Still in Range
This choppiness had made many of the investors to be confused and many of them refused to be drawn into the markets at such a time. That is why we were seeing the market consolidating and ranging. The attacks did come over the weekend but the US has made it clear, atleast for the short term, that these would be only one-off and hence the threat of a total escalation of the war has basically vanished as of now. This has helped to calm down the markets and that is the reason why we have been seeing the markets quiet at this point of time.
The euro has been in range for many weeks now and the momentum to breakout in any specific direction is clearly lacking at this point of time. There have been attempts to break through on either side but those have not come to fruition at this point of time as the market continues to remain quite fluid in anticipation of a variety of factors including the situation in Syria, the trade war between China and the US and also the fate of the QE program.
Looking ahead to the rest of the day, we have the retail sales data today from the US which is a bit of a surprise as it gets released on a Monday, which is generally considered as a slow-data day. With the geopolitics out of the way for now, we can expect this piece of data to get more attention and could set the trend for the short term.
This article was originally posted on FX Empire
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