The EUR/USD holds yesterday’s gains and looks set to test levels above 1.05, report Scotiabank economists.
“Fed Spike” Prices Will Put More Pressure on the Dollar
“We think strong returns in European stocks relative to US markets will help keep the euro propped up in the near term, while ‘Fed Peak’ pricing will put more pressure on the dollar in the longer term, paving the way for additional, albeit modest, gains from the euro until 2023.”
“EUR/USD is consolidating this week’s range below 1.05 and just below retracement resistance at 1.0517 (50% Fibonacci retracement of the 2022 dip).”
“Yesterday’s strong (technically bullish) gains will somewhat offset the bearish euro price action we saw at the start of the week, but new highs are needed to give the euro more evident and sustained momentum.”
“Support is 1.0390/00 and 1.0300/20.”
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.
