The EURUSD pair continues to trade in a tight range which is expected during a period of holidays. Though Christmas is over, it is likely that many of the traders are still on holiday for the rest of the week and hence the volatility and the liquidity is likely to be low during this period and thats what we have been seeing in the markets over the last 24 hours.
EURUSD in Tight Range
We have seen that the pair has been in a consolidation mode during this period. A period of low liquidity will either lead to a lot of volatility in certain markets as the large traders use this opportunity to push the pair in certain direction to make some quick profits. Or the lack of liquidity will lead to the pair showing lack of volatility as there are not many traders left in the market and those that are left are either not big enough or are not too interested to spend time and money in pushing the market in a certain direction.
Also, it is only natural that it requires a pretty large set of traders to push the euro in a specific direction considering the overall size of the market which is quite big. This is the reason why we are seeing some low volatility in the markets over the last 24 hours and this is set to continue in the coming period as well as we wait for the holiday period to get over and the traders to return so that we can see some action.
Looking ahead to the rest of the day, after the holiday in Europe yesterday, we can see some of them back in trading today. We also have the CB consumer confidence data from the US and so we can expect a decently active market for today though we do not expect any major breakthrough in the prices.
This article was originally posted on FX Empire