The EURUSD pair continued to trade in a strong manner though it is obvious for everyone to see that the pair is beginning to become less and less volatile as we head towards the end of the week. The volatility and the liquidity is expected to become even lesser in the week ahead as we head to the end of the year with the dollar on the backfoot.
EURUSD Moves Higher
The tax reform bill in the US has been fully passed and it only requires Trump to ink his acceptance which should happen anytime soon. It is viewed as a big victory for Trump as it is one of the bills that he and his team had worked very hard to pass through. This directly benefits the corporates in a large manner but it is generally believed that it would help to make them more profitable and would in turn help to bring in more jobs for the people of the US.
With this being passed, it means that Trump has consolidated his position at the top and now it is likely that he shifts his attention to other bills like the healthcare reform bill, so that he could pass them through as well. But unlike the last week, the dollar and the stock markets in the US do not seem to share the same enthusiasm and we have been seeing the dollar moving lower over the last few days all across the board which has helped the euro to climb higher.
Yesterday, we saw the EURUSD pair make a brief trip towards the 1.19 region but that move has since been corrected and it now trades below this region as of this writing. Looking ahead to the rest of the day, we have the final GDP data from the US but no other economic news from the US or the Eurozone. The ranges are expected to get tighter as we head towards the holidays.
This article was originally posted on FX Empire