The EURUSD slid lower over the last 24 hours but for no particular reason. The euro was generally weak across the board and though there was not much strength in the dollar, it was generally steady and this was enough for the pair to slide lower in trading yesterday. The pair went as low as 1.18 before it bounced and it trades above the 1.1820 region as of this writing.
Prices Slide Lower
The market seems to be in a wait and watch mode as far as the dollar is concerned. We have the rate hikes around the corner though some are raising some last minute doubts on whether the hike would really go through this month. Then there is the question of whether the tax reform bill would get passed as it continues its passage through the Senate and all these events are taking time which has made the traders to wait and see what happens.
This is also the last month of the year and we await further developments and with the holidays also around the corner, this is all the more reason for the traders not to trade in a big manner and wait for things to happen before choosing the direction in which they want to go. This has led to some steady trading in the dollar but the euro continues its slow grind lower as many of the currency pairs try and stick to their ranges that have been established over the last couple of months.
Looking ahead to the rest of the day, we do not have any major news from the Eurozone but we do have the ADP employment report from the US which should act as the precursor for the NFP later in the week. We can expect the pair to continue to be under pressure as the market awaits further news.
This article was originally posted on FX Empire