The EURUSD was soft for the day but it did not fall by too much as the market was mainly in a consolidation mode for the most of the day. There were no specific fundamentals to push the euro or the dollar in any specific direction and this lack of fundamentals led to some cagey trading for the day. The euro did weaken a bit but nothing that is likely to worry the bulls at this point of time.
EURUSD In Consolidation Mode
In a measure of what is in store as we enter into the last couple of weeks of the year, the market saw some dull and consolidative trading for most of the day yesterday. The euro weakened slightly as the pair slid to the 1.1780 region but it has since bounced off the region and trades near 1.18 as of this writing. Both the slide and the bounce have not had much impact on the markets and hence there is no cause for alarm for either the bulls or the bears at this point of time.
The euro is likely to be on the backfoot not only due to the strength in the dollar but also due to the Brexit deal. There is still a possibility that the UK may walk out of the talks with no deal. This was considered a real possibility a couple of weeks back but was replaced by optimism a week back as the possibility of a deal brightened and there were also reports that said that the announcement of a deal was around the corner. But all of this was turned upside down by the opposition to the Irish borders and unless this is sorted out soon, we could see the deal collapse and the UK and the Eurozone going back to square one.
The market also awaits the data from the US tomorrow with the NFP employment report being released during that time. Except for a speech from Draghi, there is not much to look forward to in terms of economic news in the Eurozone or the US for today. So, expect some more consolidation and ranging.
This article was originally posted on FX Empire