Euro (EUR) is quietly consolidating inside a decent vary just under 1.15, holding flat vs. the US Greenback (USD) and treading water in gentle US-holiday commerce, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
Communications from the ECB have been largely impartial
“We had famous the absence of any significant home releases following Tuesday’s ZEW figures, and Wednesday’s Fed assembly provided little to vary our bullish EUR outlook.”
“Communications from the ECB have been largely impartial, signaling to markets that charges are at, or near, their terminal ranges. Markets are nonetheless pricing about one 25bpt reduce by year-end, however pricing has softened with about 10bpts of easing eroded since late Could.”
“The multi-month pattern is bullish and momentum is confirming (albeit modestly). EURUSD continues to commerce properly above the 50 day MA (1.1358), and we glance to a near-term vary outlined by 1.1420 assist and 1.1520 resistance.”
