Trading of the EUR/USD continues to track the level of risk in the market. As traders feel the opportunity to trade more on risk, the EUR/USD rate begins to rise. The opposite of this theory sides with a decrease of risk taking during the trading day. Traders pile into the Dollar as financial uncertainty creeps in and risk taking evaporates. This is also seen in the stock market. As the assumption grows of a recovering global economy, stocks are sent higher. When financial data fails to satisfy investor's expectations, the stock market falls. Yesterday the Dow Jones Industrial Average was down 0.91%.
The EUR was influenced very little yesterday after industrial production in the European-Zone rose 0.3% for the month of September. The forecast for the economic indicator was expected to rise by 0.5%. Despite the negative outcome, the EUR/USD reacted mostly from negative equity markets.
Trading for the EUR/USD pair may continue to be pushed by movements of the equity markets. Traders should typically keep the values of equities in mind as the EUR/USD does see an affect from the performance of equities. The pair is currently trading near the 1.4870 mark. We can expect a potential trading range of the pair between 1.4960 and 1.4810 today.