Euro softens as G10 peers outperform – Scotiabank
|The Euro (EUR) is soft, down a fractional 0.1% vs. the US Dollar (USD) as it underperforms all of the G10 currencies with the exception of GBP and CHF and fades a minor portion of Tuesday’s gains, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
ECB dovish tilt caps Euro upside
"The shift in the options market has been notable and completely divorced from fundamentals as German-US yield spreads have remained soft. Comments from the ECB have leaned somewhat neutral/dovish, largely in response to the latest tensions between the EU and US."
"President Lagarde suggested that policy was in a good position while GC member Nagel spoke of growth concerns beginning to outweigh risks from inflation. The short term rates market is leaning toward marginal cuts and has added a few bpts over the past week or so."
"The EUR looks to be consolidating Tuesday’s impressive surge and recent price action is suggestive of near-term resistance above 1.1750. The RSI is bullish and we remain focused on the late December high around 1.18, as well as the mid-September high around 1.1920. We look to a near-term range bound between 1.1680 support and 1.1780 resistance."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.