The Euro (EUR) is falling, in line with the broader recovery of the US Dollar (USD), notes Shaun Osborne, Head of FX Strategy at Scotiabank.
Room for some additional corrective losses in EUR
“The EUR itself faces the risk of another ECB rate cut soon (a 25 basis point cut has been priced in for the Sept. 12 meeting). But a Reuters report yesterday highlighted divisions among ECB policymakers over the outlook thereafter, with some increasingly concerned about recession amid weakening activity in Germany, and others more worried about persistent inflationary pressures.”
“A more cautious ECB towards the end of the year suggests that EUR losses may not extend too far in the near term. EUR/USD has retraced a little over a third of the August rally and looks set to give up a bit more ground at least in the near term.”
“A lower close on the week to last Friday saw a bearish ‘dark cloud cover’ signal develop on the weekly candle, suggesting scope for some further corrective losses in EUR. Support at 1.0990 and (stronger) at 1.0920/40. Resistance at 1.1070/75.”
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.
