The Euro (EUR) is buying and selling flat vs. the US Greenback (USD) and consolidating round 1.11 into Tuesday’s NA session, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Euro stays weak to Fed/ECB divergence
“Market contributors confirmed little response to the combined ZEW investor sentiment knowledge out of Germany, because the expectations sub-component provided a modest shock whereas the present scenario subindex delivered a minor disappointment.”
“The ZEW figures have been the weekly knowledge spotlight for Europe and focus will now shift to the ECB, the place policymakers look like sustaining a bias to easing, making a stark distinction to the impartial, ‘affected person’ messaging from the Fed.”
“EUR/USD’s RSI has drifted beneath 50, into bearish territory. The 50 day MA (1.1084) seems to offer modest help, nevertheless significant help will not be anticipated above the psychologically essential 1.10 degree and the mid-March highs round 1.0950.”
