Euro (EUR) is getting into Tuesday’s NA session largely unchanged vs. the USD whereas buying and selling with modest help over the previous week or so, ignoring continued dovish messaging from key policymakers on the ECB, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
No momentum in both path
“Governing Council member Knot seems to be leaning towards a minimize on the subsequent assembly on June 5. The charges market is pricing almost one full minimize for the assembly and greater than two cuts by the tip of the 12 months. For EUR/USD, the outlook for relative central financial institution coverage is important and medium-term EUR positive factors would require renewed help from spreads by way of larger pricing of Fed easing.”
“When it comes to the near-term knowledge calendar, this week’s spotlight would be the preliminary PMI’s scheduled for launch on Thursday and Germany’s IFO enterprise sentiment figures, additionally scheduled for Might 22.”
“The RSI is hovering round 50, indicating an entire lack of momentum in both path. The latest vary has been outlined by the late April excessive within the higher 1.15s and final week’s help under 1.11. Close to-term help is predicted at 1.1150 with resistance anticipated above 1.1350.”
