EUR drifts lower after another failure around 1.0950 – Scotiabank

FXStreet Insights Team FXStreet

Spot has drifted a little lower through the overnight session after failing to progress through the mid-1.09s, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Bull trend is consolidating and EUR is still prone to pushing higher

"Intraday volatility may have been accentuated by the sharp swings in Turkish markets earlier. Eurozone data showed a slowdown in Q4 Labour Costs (to 3.7% in the year, from 4.5%). Eurozone Feb CPI was revised a tenth lower (0.3% m/m, 2.3% y/y). Little substantive progress emerged from US/Russia talks on Ukraine yesterday—underscoring perhaps how hard it may be to get a lasting agreement."

"The EUR has drifted a little lower after again failing to progress above the mid-1.09 point. There is some technical jeopardy for the EUR here, but only if spot losses extend below key short-term support at 1.0830 (double top trigger). Otherwise, the bull trend is consolidating and still prone to pushing higher. Minor dips are still likely to find willing buyers."

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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