The theme for most of the day was the dollar strength over the last 24 hours and it then led to a small rebound during the course of the US session but overall, it has to be said that the dollar won the day hands down and it remains to be seen how far the recovery in the dollar is going to proceed.

EURUSD Under Pressure

The strength of the dollar has been growing since the beginning of the week as the fears of the trade war that was likely to erupt has receded in a slow and steady manner over the last few days. The US had launched the bugle for the war and China looked like it might join it pretty soon but apart from the initial sparring, there has not been much follow up in this regard. This has led to relief in the markets.


And as a result of this relief, we are seeing the moves being reversed in the market over the last couple of days and this has led to the strengthening of the dollar during this period. The EURUSD pair suffered due to that and we saw the pair fall towards the 1.2380 support region during the course of the day yesterday but when the US session began, we saw some dollar selling which has led to the pair recovering back through the 1.24 region during the late night trading.

Looking ahead to the rest of the day, as expected, we do not have much of economic data or news for the day and this was expected as these are the final few days of the month when there is lack of data in general. We are likely to see some month end currency flows during these days and that is the reason why the traders have to make sure that they dont get carried away by any quick and fake moves.

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