Euro (EUR) traded an in a single day excessive of 1.1631 earlier than erasing positive factors on heightened geopolitical tensions. Pair was final at 1.1520 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong notice.
Escalation in geopolitical tensions might weighed on EUR
“Each day momentum is gentle bullish whereas RSI fell from close to overbought situations. Resistance at 1.1630 ranges. Help at 1.15, 1.1380 (21 DMA) and 1.1320 (50 DMA). Escalation in geopolitical tensions might weighed on EUR for now however the broader image of a extra constructive outlook stays unchanged.”
“German/European defence spending plans can lend a lift to progress. Prospects of ECB lower cycle nearing its finish whereas there’s room for Fed to renew easing cycle. China’s financial progress displaying tentative indicators of stabilisation (steady to stronger RMB can see constructive spillover to EUR). Indicators of portfolio flows and reserve diversification which will favour different reserve currencies such because the EUR are a few of the medium time period components underpinning the attraction of EUR.”
