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Old 03-10-2017, 02:50 AM
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Default Re: Economic and company news by ForexMart

EUR/USD Fundamental Analysis: March 10, 2017

The EUR/USD pair was again met by a reversion coming from the pair’s strong support barrier. However, this was not anymore due to the movement of the USD, since the bounce has been mostly attributed to the impending release of the NFP report. The 1.0500 region has consistently remained solid as the pair’s support barrier, and now that the NFP report has affected the course of the currency pair, the pair’s bulls have now become confused, especially since most of them do not want to show their strength before the NFP report comes out if ever the report falls short of market expectations.

During the past weeks, the EUR/USD pair has been has been shooting up and down due to the volatility of the USD, with the euro as the currency’s docile partner. However, the situation yesterday turned out to be slightly different as the ECB rate announcement and press conference took place. The ECB maintained its current rates but ECB Chair Mario Draghi came out as very hawkish during the succeeding press conference, with Draghi having absolutely no qualms with regards to the current state of the European economy. In his conference, Draghi highlighted that EU employment rates were finally perking up, and the expected concerns within the EU economy failed to materialize, and this has triggered the EUR/USD pair to move up towards 1.0600 from 1.0500 points and is currently trading at just under 1.0600 points. The currency pair’s stance might have been much higher were it not for the impending release of the NFP report and the ADP report which is scheduled to be released next Wednesday.

The market will now be solely focusing on the release of the NFP report today. Market expectations for the report are now higher than ever due to a positive ADP employment report. Aside from the NFP, the market is also placing its bets on a possible rate hike due next week, and the EUR/USD pair should be able to have a strong support barrier at 1.0500 and a resistance barrier at 1.0700 in case the data falls short of market expectations.
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