EUR softens toward 1.16 – Scotiabank

FXStreet Insights Team FXStreet

The Euro (EUR) is entering Monday’s NA session with a modest 0.2% decline, softening toward 1.16 in an environment of broad-based US Dollar (USD) strength, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR ignores rate support with a focus on US data

"Fundamental releases are limited ahead of Friday’s preliminary PMI’s and euro area rate expectations are steady as they continue to reflect the ECB’s neutral guidance. Interest rate differentials are rising modestly, offering support as they climb to fresh November highs and push toward the upper end of their three month range. Near-term risk lies with the broader USD and the market’s response to US data releases."

"The EUR’s technical signals remain broadly neutral as the RSI continues to hover around 50. The 50 day MA (1.1657) appears to be offering near-term resistance, challenging the EUR’s recent recovery from its early November lows in the mid/upper 1.14s. We are neutral absent a break of the 50 day MA and look to a near-term range bound between 1.1550 and 1.1650."

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FXStreet Insights Team

FXStreet

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