EUR/USD Fundamental Analysis – week of December 11, 2017

TARIFFS LATEST

Colin First

Updated Sat, Dec 9, 2017, 1:27 AM

The EURUSD pair weakened during the course of the week as the dollar gained in strength and the euro was weak due to the development as part of the Brexit process. A combination of these pushed the pair below the 1.17 region during the course of the week but it managed to recover at the end of the week and closed just below the 1.18 region for the week.

EURUSD On the Backfoot

There was a lot of uncertainty around the Brexit process which dominated the headlines in Europe and this added a lot of pressure on the pound as well as the euro. After it seemed as though the deal was done and that it was only a matter of time before the details of the deal would be released, the talks broke down over the last week or so over the Irish borders. Some of the Irish parties refused to accept the deal and it looked as though the UK might walk out of the talks with no deal being made. This would not have been good for both the UK and the Eurozone as well. But as the week progressed, there seems to have been a deal that has been struck and if reports are to go by, it only needs the approval stamp from the Irish parties for the details of the deal to be announced and ratified. This helped the euro recover towards the end of the week.

The dollar was steady to strong during the course of the week as the US continued to throw up some strong economic numbers including the NFP data which came in better than expected. This helped to keep the bid under the dollar and helped it to gain all across the board over the last week.

Looking at the upcoming week, there is a lot of news and events throughout the course of the week and the focus will be split between the euro, the dollar and the pound. We have the FOMC rate announcement, where a hike is expected plus the CPI, PPI and retail sales data from the US. If this wasnt enough, we have a speech from Draghi and we also have the ECB press conference. If all these arent enough to bring about volatility, then we do not know what will !

This article was originally posted on FX Empire