The Euro (EUR) is up a modest 0.2% towards the US Greenback (USD) and making an attempt stabilization within the mid/upper-1.16s, supported by an enchancment within the broader market’s temper, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
EUR exhibits no response to ZEW sentiment shock
“The ZEW investor sentiment figures got here in higher than anticipated however supplied no rapid response within the forex.”
“Commerce tensions stay a key supply of uncertainty however market contributors look like discovering reassurance in either side’ willingness to proceed negotiations. Quick-term charges markets are unchanged and nonetheless pricing round 25bpts of easing by 12 months finish. ECB communication has been unequivocally impartial and markets are pricing no change for subsequent Thursday’s assembly. “
“The EUR’s medium-term pattern stays bullish however the newest pullback has introduced its momentum indicators again to impartial. We word the continued significance of the 50 day MA (1.1479) by way of providing medium-term assist, and see the near-term vary roughly certain between 1.1650 assist and 1.1720 resistance.”
