Trading this week is expected to be light and in a tight range. USD is still moving in its side way trading since the half of last may of this year when EURUSD could not break above 1.2945 or below 1.2455

The dollar could gain support recently from the fed's inflation worries which reduced the probabilities of a interest rate cut in the first quarter of next year in spite of the growth slow rates of the 3rd quarter of this year.

This side way of trading is looking persisting as long as there is still another waited .25% hike from the ECB priced in the market. I see the single currency can face difficulties after this hike next month before this time, it can be mixed.

 

Best Wishes

 

FX Consultant

Walid Salah El Din