EUR extending recovery and threatening fresh highs – Scotiabank

FXStreet Insights Team FXStreet

The Euro (EUR) is entering Wednesday’s NA session with an impressive 0.5% gain against the US Dollar (USD), rising in tandem with most of its G10 peers in an environment of broadbased USD weakness.

Technicals seem to be bullish

"The outlook for relative central bank policy remains dominant as markets price in more aggressive easing from the Fed. Interest rate differentials are narrowing from deeply negative levels and offering the EUR support, threatening an extension of the ~75bpt rise observed since late May. Data-wise, Germany released its final CPI figures for July, and headline was unchanged from the preliminary at 2.0% y/y."

"The EUR’s latest gains have delivered a near full retracement of the decline from late July and the EUR is once again threatening fresh multi-year highs. Momentum is bullish, but the RSI is still below 60 and well shy of the overbought threshold at 70. We look to a near-term range bound between 1.1650 support and 1.1750 resistance."

Author

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.

EUR/USD remains below 1.1850 after US data

EUR/USD struggles to gain traction and trades in a narrow range below 1.1850 on Wednesday. The US Dollar stays resilient against its rivals following the better-than-expected Durable Goods Orders and housing data, limiting the pair's upside ahead of FOMC Minutes.

GBP/USD flirts with daily highs near 1.3580

GBP/USD manages to set aside two consecutive daily declines and trades with slight gains in the 1.3580 zone on Wednesday. Cable’s uptick comes despite acceptable gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold regains some shine, retargets $5,000 ahead of FOMC Minutes

Gold gathers fresh upside traction on Wednesday, leaving part of the weakness seen at the beginning of the week and refocusing its attention to the key $5,000 mark per troy ounce, all ahead of the release of the FOMC Minutes and despite the modest uptick in the US Dollar.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.