Yesterday, while the European market remained closed, the New York market reopened. As the Dollar weakened, the Euro rose to 1.0429 but continued to trade in a narrow range.
Today, markets are reopening, but many major participants are still on holiday until the end of the year. This is expected to keep the Euro in a narrow trading range. However, differences between a aggressive Federal Reserve (FRB) and the European Central Bank (ECB), which may cut rates further, could affect the currency. Political stability in the U.S. compared to ongoing troubles in Europe also weighs on the Euro.
Euro/Dollar Expected Range: 1.0440 – 1.0380
Note: The above content is not a guarantee of profit. Please make your own decisions when trading.