The Euro (EUR) is unchanged against the US Dollar (USD) on Friday, holding around the midpoint of the Wednesday’s wide range, notes Scotiabank Chief FX Strategist Shaun Osborne.
Charts show tentatively positive signs
“ECB Governor Nagel commented earlier this week that the central bank should not rush to cut rates, echoing Holzmann’s observation earlier this week. Nagel said inflation remained elevated and uncertainty was high. “The Eurozone CPI was finalized at 2.4% in the previous December year, in line with preliminary data.”
“Spot has oscillated in a 50/60 tick range around 1.03 for much of the week. Short-term patterns suggest more range trading today as downtrend momentum weakens. However, the Long-term patterns continue to lean positively for the EUR; I have noticed the bullish ‘morning star’ pattern on the daily candlestick chart that developed around the previous week’s change.”
“That signal remains intact, even if progress has stalled since Wednesday. The weekly chart may also show a bullish signal (“piercing line”) if the EUR can maintain gains until the close of the week. Normally, this would be a strong signal that an upward push will develop, but the macroeconomic backdrop rather suggests that directional risks are leaning in the other direction for the EUR.”
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.
