EUR holds steady near mid-1.16s – Scotiabank
The Euro (EUR) is entering Monday’s NA session flat to the US Dollar (USD) with an extension of its recent consolidation in the mid-1.16s, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
ECB’s Schnabel hints at possible rate hike
"Hawkish comments from the ECB’s Schnabel offered a short-lived boost as she affirmed the central bank’s neutral policy guidance while also signaling comfort with the possibility that the next move would be a hike. Short-term rates markets have been slowly fading their dovish bias over the past few months but have only just started pricing the (fractional) possibility of a hike over the medium-term horizon."
"Euro-area/US yield spreads remain supportive as they continue to climb from deeply negative levels, and the near-term balance of risk appears to favor further fundamental strength. Stronger data are offering additional support, given Monday’s release of impressive industrial production figures for October (+1.8% m/m vs. 0.3% exp.)."
"The RSI is bullish and hovering just below 60 as EUR extends its latest short-term consolidation in the mid-1.16s. The 50 day MA (1.1609) has been broken, paving the way for further gains toward the upper end of the flat range from June. We anticipate little resistance around 1.17 and look to material resistance above 1.18. We look to a near-term range bound between 1.16 and 1.17."
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FXStreet Insights Team
FXStreet
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