The Euro (EUR) has lost 0.5% so far this session as the EUR’s consolidation from earlier in the week plays out in mild relief, notes Shaun Osborne, Chief FX Strategist at Scotiabank.
EUR falls despite some narrowing in short-term EZ/US spreads
“In the absence of any data or fundamental developments, short-term flows appear to be driving the move on the session. Note that 2-year EZ/US spreads have tightened further today (-147bps, the narrowest since mid-2023), suggesting that EUR losses may reverse again after end-of-month flows dry up.”
“EUR/USD’s drift has undermined near-term uptrend momentum and spot risks are easing a bit further to test key near-term support at 1.1100/10. Price action suggests a minor peak around 1.12 may have been reached by the end of the week. A drop below 1.1100 may see losses extend to the mid-1.10 area.”
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.
