The Euro (EUR) is quietly consolidating within the low 1.17s and lengthening this week’s slim vary, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
Markets await catalyst w/ aid on commerce/tariffs
“Germany’s last CPI was launched in step with expectations, printing 2.0% y/y, and France will launch its last CPI figures on Friday. The week has been comparatively quiet from a elementary perspective, as markets have appeared to commerce talks between the US and EU and located reassurance within the tone of negotiations and Europe’s avoidance of a tariff letter from the US.”
“ECB commentary has been impartial, pushing again of requires price cuts, nonetheless market pricing continues to lean towards easing (~23bpts by yr finish). Yield spreads have as soon as once more turned supportive for the EUR as US yields have pulled again from their latest highs.”
“The multi-month pattern stays bullish however the EUR’s newest consolidation has delivered a substantial lack of momentum. The RSI has pulled again from its latest overbought highs within the mid 70s and is at the moment hovering simply above 60. We proceed to focus on the significance of the 50 day MA (1.1459) as an essential degree of medium-term help. We see the near-term vary certain between 1.1680 help and 1.1780 resistance.”
