EUR/USD Struggling at the Lows
The EURUSD pair continues to trade under pressure as the strength of the dollar has been hitting the market pretty hard since the beginning of the week. The pair now trades near the lows of its range as the market looks forward to what the ECB has to say later in the week about the state of the economy.
EURUSD At Range Lows
Any signs of bearishness from the ECB could tip over the euro and we would probably see it falling pretty hard in due course of time if that happens. But for now, the pair seems to be pretty stable at the lows as the market waits in anticipation. The treasury yields in the US continue to rise in a strong manner all across the US markets and this has been a very important reason for the pair to come under pressure and for the dollar to strength. There does not seem to be any other fundamental reason for the dollar strength.
The dollar was expected to be on the backfoot as the Fed continues with its expected policy of 3 rate hikes for the year. This is something that is well anticipated in the markets and has already been priced into the markets by the traders. There was an initial feeling at the beginning of the year that the Fed could adopt some quick rate hikes and even go for 4 rate hikes but the weak incoming data from the US so far ha reduced that possibility and it remains to be seen how it will fare in the coming days.
Looking ahead to the rest of the day, we do not have any major economic news or data for the day and hence we can expect some consolidation in the pair. We do not expect the pair to make any major moves at a time when the market is waiting for the ECB and hence the consolidation and ranging should continue for the day.
This article was originally posted on FX Empire
