EUR/USD Trades in a Narrow Range on Empty Dockets

20-euro bill and the map of EuropeThe EUR/USD currency pair today traded in a tight range with minimal movement given the empty US and EU dockets. There were no major factors that could influence the direction of the currency pair, however, the US dollar strengthened against the euro later in today’s session.

The euro gapped higher against the US dollar early in today’s session continuing a rally that started mid-Friday, but it has since retraced most of its gains. The pair traded within a 30 point range, but was on a bearish trend at the time of writing.

The euro opened the day’s session on an upward trend boosted by the results of the French legislative election, which indicated that Emmanuel Macron‘s party might win a majority. Sunday’s election was the first round and President Macron’s ‘En Marche’ party is poised to win at least 415 of the 455 elective posts.

The US dollar as tracked by the US Dollar Index performed strongly after the opening of the North American session and contributed to the EUR/USD’s further decline. The US dollar opened the week much stronger against the single currency as markets await the FOMC meeting starting tomorrow. The markets have currently priced in a FOMC rate hike, which has boosted the greenback.

The currency pair’s future performance is likely to be affected by the release of the Eurozone and German ZEW surveys of economic sentiment, both scheduled for tomorrow.

The EUR/USD currency pair was trading at 1.1202 as at 14:53 GMT having dropped from a daily high of 1.1231. The EUR/JPY was trading at 123.06 having opened the day’s session trading at 123.55.

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