EUR/USD looks for direction between 1.1500/1.1625 – Scotiabank
|FX Strategists at UOB Group remain neutral on spot, adding that it could extend the rangebound trade between 1.1500 and 1.1625 in the short-term horizon.
Key Quotes
“EURUSD remains generally steady, however, with Italian stocks and bonds rising strongly in response to the government agreeing a budget plan that it will now forward to Brussels to assess. This may yet become problematic for the EUR again. For now, the EUR can take modest comfort in the slightly narrower Bund/BTP spread, around 9bps narrower on the day at 295bps”.
“Short-term trends look rather flat for EURUSD. The EUR has had a couple of looks at the 1.16 area in the past couple of days but there is little sign that there is enough momentum to really challenge key resistance in the low 1.16s (retracement resistance at 1.1623 and the 40-day MA at 1.1619). Failure to progress risks pushing spot back under 1.1570 to retest 1.1520/40 near-term, we feel. Outside of 1.1500/1.1625 is needed to instill a little more directional momentum in this market”.
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