The euro (EUR) is silently consolidating this week’s rally to a new maximum of several years and entering the session NA on Friday to a large extent without changes against the US dollar (USD), the FX strategy leaders of Scotiabank, Shaun Osborne and Eric Theoret and Eric Theoret report.
EU forum in Sintra next week
“The latest EUR profits have been fundamentally promoted, backed by narrowing of deeply negative performance differentials between Europe and the US that favors Eur. The narrowing has been mainly driven by developments outside of Europe and specifically by a reevaluation of expectations for the Fed. For Europe, the data published this week offered little in terms of narrative, since the PMIs were kept close to 50 (without growth or contraction) while France published preliminary data from slightly stronger IPC than expected, although with a general data of 0.9%. “
“Those responsible for the monetary policy of the ECB have been vowel when communicating a neutral tone, rejecting somewhat the expectations of the short -term rates market that continues to value around 25 basic relaxation points for December. The ECB will house its Sintra forum (the equivalent of Jackson Hole of the ECB) next week from Monday to Wednesday. As for trade, negotiations between the US progressing in private and the EU member states seem to be divided into their response to tariffs (reprisals). “
“The trend is bullish, the impulse indicators confirm it, and the thrust of the RSI to 70 leaves something overcapted but still below the impulse peaks reached in March and April around 75. We continue to highlight the importance of the 50 -day mobile average as a medium -term support level. We look for short -term support closer to 1,1600. In terms of resistance, we see little before the area of 1,1850/1.1880. “
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.
