EUR probes 1.14 area on tariff relief – Scotiabank
|The EU’s tariff reprieve followed what the president called a 'very nice call' with Commission President von der Leyen over the weekend, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Trend remains firm
"Concerns over the impact of 50% tariffs on US growth and prices may also have played a part in the decision to delay. Or perhaps Europe offered more concessions. European stocks are up nicely on the day in response and that gain extends the YTD outperformance of European blue chips (up 10%) over US markets (S&P down 2%). Given the sell-off in the USD, currency adjusted returns for US investors in EU stocks is even more remarkable (+21%)."
"Spot gains stalled in the low 1.14 area overnight but the solid bull trend from the mid-May low remains intact and looks to be developing strongly still. Bullish trend indicators are aligning across the intraday, daily and weekly oscillators. Support is 1.1325/50. Resistance is 1.1460 and 1.1580/00."
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