Categories: Markets

EUR/USD: Breaking above 1.0950 should translate into slight gains towards the upper zone of 1.09 minimum – Scotiabank

EUR/USD: Breaking above 1.0950 should translate into slight gains towards the upper zone of 1.09 minimum – Scotiabank

The economists of Scotiabank They report that the Euro receives support on the declines, as the ECB keeps its attention on the risk of monetary policy tightening.

Risks for the Euro remain on the upside

ECB Governor Rehn said prices were slowing, but not as fast as policymakers wanted, while core inflation was falling only gradually.

Core price stickiness is a key point for the ECB, but the hawkish communication is reflected in the market price, which implies another 50 basis points rise for the fall. However, from our point of view, a late summer (September) schedule seems more appropriate.

The risks to the euro continue to tilt to the upside and small dips in the euro will continue to be well supported.

Intraday, support is located at 1.0905 and 1.0875; if the euro breaks above 1.0950, it should move slightly towards the upper zone of 1.09 at the very least.

Source: Fx Street