The euro (EUR) has weakened, lowering a modest 0.2% against the US dollar (USD) and fading a slight portion of this week’s profits. Interest rates differentials remain favorable, providing a fundamental basis for the recovery of the EUR of their losses in early July, since markets readjust their expectations about ECB’s features after Thursday’s decision, they inform the Chief of Currency Strategies of Scotiabank, Shaun Osborne and Eric Theoret.
EUR is weakened despite the broader bullish trend and the support of the ECB
“A widely expected maintenance was delivered, however, the markets have made a significant reevaluation of their expectations for cuts in response to the press conference of President Lagarde, where she transmitted the high degree of comfort of the Governing Council with the current policy adjustments.”
“The markets are now only valuing around 15 basic points of relief by the end of the year, an erosion of 10 basic points from the beginning of the week. In terms of data, the figures of IFO feeling of Germany were largely in line with expectations. The culminating point of next week will be the publication of the preliminary data of the IPC scheduled for Friday, August 1.”
“The trend of several months is bullish since we continue to highlight the sequence of higher and highest minimums since February. The RSI is upward, above 50, and the 50 -day mobile average remains ascending, offering confirmation to the impulse. We expect a limited short -term range between the support of 1,1700 and the resistance of 1,1780.”
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.
