The euro (EUR) is strong, rising 0.6% against the US dollar (USD) and being an intermediate yield between the G10 in an environment of generalized weakness of the USD. The latest EUR profits are still fundamentally driven, with performance differentials leading to the currency to new maximums reaching levels not seen since September 2021, the FX chief strategists of Scotiabank, Shaun Osborne and Eric Theoret report.
EUR growth is driven by differentials through the change in the perspectives of the FED/ECB
“The change in the perspective of the relative policy of the central banks is being mainly driven by the evolution of the perspective of the Fed, rather than that of the ECB, with the expectations of rates in the euro zone oscillating between 20-25 basic points of relaxation by the end of the year, since the markets aggressively readjust the perspective of relaxation of the Fed. The data publications have been relatively limited, with GFK consumer confidence figures from Germany arriving to a large extent as expected.
“The comments of the ECB chief economist, LANE, suggest that the Central Bank has largely completed its goal of returning inflation to the objective. The trend is up RSI reach peaks around 75, offering the possibility of greater short -term rising potential for now. “
“The EUR/USD has largely reached the early resistance around 1,1750 and now we look towards the area of ​​1,1850/1,1880 as the next objective. In terms of support, the 50 -day mobile mean (1,1385) remains important from a medium -term perspective, but it is currently well below the spot. We look for short -term support closer to 1,1600.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
