EUR/USD drifts back after a solid run higher. Economists at Scotiabank analyze the pair’s outlook.
Firmer support should emerge at 1.0760/1.0770
While there is little to remark upon in terms of underlying fundamentals supporting the EUR, there are some positive developments in the background – solid returns from European equities and a moderate pick up in (unhedged) portfolio inflows plus more supportive yield spreads – which are underpinning the EUR.
Trend momentum on the intraday and daily DMIs are leaning bullish – but the signal is marginal and perhaps not enough to suggest a reliable base in the upper 1.0700s at this point.
Losses through 1.0790 may extend to a little but not that much for now. Firmer support should emerge at 1.0760/1.0770
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.