Tuesday, 23 January 2018

EUR / USD - consolidation in a narrow range continues

Posted by Anonymous at 16:11 Labels: ,

EUR / USD is trading with a sideway focus on the background of the absence of significant macroeconomic data. Neither in the US, nor in Europe yesterday, were important statistical data released these days, so the market participants worked mainly on the events that took place last week. Today, the US news calendar is also empty. In Europe, the latest significant news is the PSD's vote for negotiating with the CDU / CSU. In the United States, it is the suspension of the work of the government due to the lack of coordination on the budget. However, both of this news had a limited impact on the market. In the first case, only agreement was obtained to hold negotiations, which may still last a fairly long and it is not known how they eventually end, although the chances of success have increased significantly. In the second case, the internal political struggle of Republicans and Democrats is permanent and the market is already largely accustomed to these events, therefore, it reacts more and more weakly. The budget in the US was to be approved as early as October 1, 2017, but all that so far has been done is to achieve the interim financing of the government (the Senate approved measures to extend the funding until February 8).
More important for the markets are meetings of central banks, which are due in late January (ECB meets this week, the Fed on the next).
Today Europe is the main newsmaker. The data was published on the index of economic sentiment from ZEW. In Germany, this indicator came in at 20.4 (forecast 17.8), and for the EU as a whole, the data came out at 31.8 (forecast 29.7). The currency pair reacts positively to these data as might be expected.
On the chart, for now, we see a consolidation of the price in the range of 1.2185-1.2300. The price and technical indicators act quite passively, so today we are waiting for the continuation of the price consolidation in the outlined range. We can expect stronger moves on the currency pair  only after the breakdown and fixing the price out of  the side way channel 1.2185-1.2300.
Our recommendations: Out of the market

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