The euro (EUR) is trying to stabilize in the middle/upper part of 1.15 while seeking to consolidate the considerable drop of 1.3% on Monday against the US dollar (USD), indicate the Chief of currency strategies of Scotiabank, Shaun Osborne and Eric Theoret.
Differentials are still favorable
“The foundations are still favorable, since we notice the gently ascending trend in the differentials of interest rates (2-year differential Germany-EE.UU.) The feeling has clearly been a factor in the EUR movement, given the remarkable decrease in the risk reversals that reveals a significant demand for protection against EUR.”
“The extended upward positioning has also left the EUR vulnerable to adjustments, as shown in the most recent CFTC report that saw the considerable long position of 18.4 billion dollars in EUR to stay stable at the upper end of its historical range. In terms of data, the culminating point of this week will be the publication of the preliminary iPC of July It is a publication that typically moves the market) showed 1 year at 2.6% and 3 years in 2.4%. “
“The EUR/USD seems to be hitting a minimum in its 50 -day MA (1,1570). The trend of several months remains bullish, given the sequence of higher and highest minimums since February. The RSI has fallen below 50, in bassist territory, but it is still close to the neutral. We expect a limited range in the short term between the support of 1,1520 and the resistance of 1,1680.”
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.
