EUR quiet on mixed ZEW data ahead of ECB Thursday – Scotiabank

FXStreet Insights Team FXStreet

Euro (EUR) is quietly consolidating within a relatively tight range around 1.1350, Scotiabank's Chief FX Strategist Shaun Osborne notes.

EUR/USD’s rally is showing signs of near-term exhaustion

"The ZEW business sentiment survey data was mixed, as the leading component disappointed while the current situation figures offered a modest, positive surprise."

"Thursday’s ECB remains a focus as market tensions continue to moderate, and a 25bpt cut is widely expected. The meeting will not include fresh forecasts, allowing ECB President Lagarde to maintain greater flexibility in terms of setting the outlook for rates."

"EUR/USD’s rally is showing some signs of near-term exhaustion with overbought momentum (70+ RSI). The latest range is roughly bound between support it’s the mid-1.12s and resistance in the mid-1.14s."

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