EUR/USD bounces after better-than-expected ZEW survey results. Scotiabank economists analyze the pair’s outlook.
Firm support on declines to the 1.0500 area
The German ZEW survey for October showed better than expected results. The current valuation reading softened, but less than expected, to 79.9 (from 79.4 last month), while the expectations component improved to -1.1 (from -11.4), also better than expected. The data suggests a clear improvement in sentiment as the ECB’s rate cycle (probably) reaches its peak. This may be a prelude to slightly better economic results.
Euro intraday gains have again capped around 1.0560/1.0565 resistance, but a firm close on Monday tips technical risks towards a bit more pressure above 1.05 and firm support on Euro declines towards the 1.0500 area.
Breaking above 1.0560 would allow the Euro to retest 1.06+.
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.
