The Effect of Three V’s on Euro-USD Trading

The risk assessment team and the traders heaved a sigh of relief in Asia, when the Japanese export data did not match up to the expectation of the investors and the market risk was slightly lowered. When you compare the Asian equities’ losses with the American losses, Asian market looks relatively stable. But this has again shifted the focus on the global market now and the economic slowdown.

But USD/EUR battle is still holding stable and both the currencies are holding up against each other after a long period of bear runs for the Euro. But when compared with the currencies of other markets, Euro is still considered as a big under-performer. It is that time of calendar where the three V’s come into play: volatility, vacation and volume.

Euro Zone will Be Relatively Calm

There is not much news expected form the Euro zone countries in the coming days, so we cannot expect much movement or fluctuation in the market based on the news. Although there have been a few variations because of the auctioning of the German bonds, this will not affect the trading of the USD v/s EUR in the longer run. The forex market break is also scheduled in the coming weeks and we will have to wait till the reopening to see any significant fluctuations in the market.

No News Expected from the United States as Well

No news or development is expected in the United States of America either, which will have a lasting impact on the markets and affect the trading of EUR v/s USD. There is a home sale spree expected though, which might push the trading a little but again, the volume is not significant enough to cause any lasting changes.

FOMC Minutes Release the Most Anticipated Event

If any event has the potential to cause significant changes in the forex market, it is the FOMC minutes release event. All eyes will be on the minutes and the policies, especially the Fed policies, which were discussed in the August 1 meeting. However, it remains to be seen if the traders will be able to draw any firm and decisive conclusions from the minutes.