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Old 31-01-2019, 11:28
ObasiFXMart ObasiFXMart is offline
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Default Re: Daily Market Analysis by ForexMart

EUR/USD Fundamental Analysis: January 31, 2019



The euro major is trading within the range close to last night high during the Asian market hours. The profit gain gave a bullish trend previously after the statement from MPC, who decided to keep the interest rates as anticipated. Yet, the increase plans for the year has changed and delayed the increase which prompted investors to wait and monitor traders as a strategy. However, this opens the possibility for the Fed to contract rather than increase the interest rates relative to the economic situation. Consequently, the dollar turned into a dovish sentiment in the broad market. The dollar has had another bullish tone after the Fed update of Fed Chair Jerome Powell during his post-FOMC conference speech saying that the balance sheet reduction that will move along the changes in future economic conditions, according to a news report from WSJ at the beginning of the week.

Yet, trades will likely end earlier amid the pressure due to Powell giving impact on trade wars and chances of the government shutdown in US economy and give a dovish tone. Moreover, the difference in spread between Germany and 10-T bonds dropped in Asian hours amid the dovish sentiment and increasing dollar in the broad market. This supports the euro bulls to gain a stronger stance higher than the 1.15 level. Currently, traders wait for the outcome of the US-China trade war and look for favorable signals for the common currency in the broad market.
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