EUR/USD: Break below 1.14 to clear the way for a dive to the 1.10/11 zone – Scotiabank
EUR/USD is steady in mid-1.14s with limited domestic drivers as the European Central Bank’s Lagarde and Lane play down the risks to inflation over the forecast horizon. Economists at Scotiabank warn that a break below 1.14 would open up the 1.11/10 area.
Firm bearish pressure remains well in place
“Lagarde pointed to the transitory path of price pressures and repeated her expectation that rates are very unlikely to increase in 2022. Lane called the recent surge in prices ‘really part of the pandemic’ and noted that he expects inflation to be ‘significantly below 2%’ in 2023.”
“With Fed hike bets mounting and the ECB unlikely to move before late-2023, we expect downside pressure on the EUR to persist over the foreseeable future toward the low 1.10s.”
“The 1.14 level stands as psychological support with limited markers to defend the EUR until the 1.10/11 area – though oversold conditions will likely act to stall its losses.”
“EUR/USD faces resistance at 1.15 followed by 1.1515/25 and firmer in the 1.16 area.”
Reprinted from FXStreet_id,the copyright all reserved by the original author.
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.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.