EUR/USD Higher

EUR/USD has been trading to the upside since Oct 25 when the pair reached a low of 1.0851 and bulls took over. Since then, EUR/USD has been seeing very good momentum to the upside making a high of 1.1125 earlier today. This appears to be happening when the Fed is indicating a non-raise year, ie the interest rates would most likely be left unchanged.

A lot of speculation still dominates the market that traders and investors are positive about the raise, but the data show a decrease in the percentage of a raise as the Fed needs more evidence.

The effect is a weakening US dollar. The US currency lost a good amount of its gains since last week and if US bulls should continue their rule, they need a boost from events driven data, namely a good report tomorrow.

Also, next Tuesday's elections are yet to reveal the impact over the market as participants expect different reactions from the market depending on which one of the candidates gets elected.

Chart: EUR/USD H4