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EUR / USD fails again at 1.1625 and falls back to the 1.1600 area.

  • The euro consolidates near 1.1600 with limited bullish attempts below 1.1625.
  • The common currency hesitates in the face of the ECB’s monetary policy decision.
  • EUR / USD is expected to fall towards 1.1524 – Scotiabank.

The EUR / USD rebound from the lows of 1.1585 seen during the European trading session on Wednesday failed to extend beyond 1.1625 and fell to the 1.1600 zone.

Waiting for the ECB

The pair remains practically lateralized for the second day in a row in a fairly quiet market on Wednesday. The euro is looking for direction with all eyes on the ECB’s monetary policy decision with the USD on a soft note as the US dollar index loses 0.1% due to falling US Treasury yields. US and macroeconomic data mixed.

Investors are positioning themselves on a dovish message from the European Central Bank, which is expected to keep its bond purchase plan unchanged and the benchmark interest rate close to zero, despite persistently high inflation, to avoid creating tensions. in some peripheral markets.

On the macroeconomic front, in the absence of relevant releases for the eurozone, orders for durable goods manufactured in the US have contracted less than expected in September, due to a solid increase in capital goods not related to the defending. These figures suggest that US companies have continued to spend on equipment, despite disruptions caused by supply restrictions.

On the other hand, the US goods trade deficit widened to $ 96.3 billion in September from $ 89.4 billion in the previous month due to a sharp drop in exports.

EUR / USD: Losses expected to extend to 1.1524 – Scotiabank

Scotiabank’s currency analysis team notes that the pair has a downward bias, targeting an area of ​​1.1524: “The German and eurozone economies are expected to slow down significantly in the fourth quarter, pointing to a moderate EUR weakness (…) EUR bearish reversal is likely to extend beyond the high zone after support at 1.1572, setting the October low of 1.1524 in its sights ”.

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