The story of the market yesterday has been the fact that the market has chosen to largely ignore the effects of the events over the weekend. During the weekend, we saw the US launch missile on specific targets in Syria and though there was much anticipation of this move over the last week and there was a fear that the markets would fall, that did not happen.
EURUSD Below 1.24
The markets continue to trade in a steady manner and this was reflected in the way that the euro had been tied to a small range for much of the day yesterday. The pair continues to trade below the 1.24 region and below the highs of its range and it remains to be seen how long this is going to continue. The euro has been locked in this range for the past many weeks and it looks set to continue in this manner for the short term. None of the economic data or geopolitical issues seem to be affecting this pair or its range at this point of time.
We also saw the retail sales data from the US yesterday which came in better than expected. But again, that did not have much of an impact on the dollar which once again leads us to believe that we are going to be in this range for quite some time now. It is indeed a difficult time for the long term traders who have been struggling to come to terms with the ranging and the slow trading but they have to live with it in the hope that there would be a breakout and it would be large pretty soon.
Looking ahead to the rest of the day, we do not have any major economic news or data from the Eurozone or the US and hence can safely expect the ranging and consolidation to continue.
This article was originally posted on FX Empire