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Old 23-01-2019, 11:56
ObasiFXMart ObasiFXMart is offline
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Join Date: Jul 2018
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Default Re: Daily Market Analysis by ForexMart

EUR/USD Fundamental Analysis: January 23, 2019

The euro closed on a neutral stance yesterday after a sudden two-way price action due to recent headlines. While there is a high demand for safe-haven assets reaching a 16-day low in the early trading session, the US equities dropped on conflict with the China-US trade war that resulted for the US dollar to decline in the broad market, supporting the recovery of euro from intraday lows. On the other hand, the US dollar sustained its bullish momentum with rising concerns with a trade war, which sets risk off trading and yields range-bound trading during Asian hours and closed todayís post on a neutral state. Moreover, the US dollar is influenced to have a dovish sentiment in the broad market on rate hike plans for the year and partial government shutdown.

News implying worsening of the Sino-US will continue to negatively affect global growth, making investors cautious on the negotiation, despite the clear talks during the meeting earlier this month that werenít exactly published yet and additionally, the US Treasury department commented saying that issues were unsettled.

Given that there are no major releases scheduled both from the US and Europe, the EUR/USD pair is assumed to trade range-bound, higher than the critical support level. News momentum and risk-off trading activity dominated trading on Tuesday. Macro data from the Atlantic area didnít have any major impact on the price movement. Meanwhile, investors are focused on the ECB and the outcome of the post-MPC conference tomorrow. If ECB members comments aligned with the statement from ECB president Mario Draghi will result in a sharp decline. While investors wait for the MPC update, they are likely to hold back from placing any major bets that also supports the tendency of range-bound trading for todayís trading session.
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