After putting on a valiant fight for the past few days, the euro came under selling pressure again today testing the key 1.1700 support level. Although the market has tried to shrug off the issue of Catalan independence it continues to weigh heavy on the trader’s minds as the political situation in the region remains unresolved.
Meanwhile, the buck received a welcome boost from a rise in US yields today as fears that US labor markets would be severely impacted by the markets proved unfounded. Although the market is looking for drastically reduced payroll number tomorrow given the sweep of Irma and Harvey in September, the focus will be on the average hourly wages. If that data proves to be hotter than forecast the greenback is likely to rally further and EURUSD could fall below the key 1.1650 support.
