According to FX Strategists at Scotiabank, the pair appears to have found solid support in the low-1.2200s.
Key Quotes
“Spot is little changed at the lower end of the broader consolidation range in place for the past few weeks, however, and we still rather feel that the EUR offers some value between 1.2150/1.2250. The Eurozone economy is gearing down slightly after a period of robust growth but fundamentals remain constructive and policy makers continue to position markets for an end to the ECB’s asset purchase programme later in the year. We still rather think EUR and EUR-denominated assets are under-owned in global portfolios”.
“Short-term price action still looks a little soft but there are signs of a firmer bid developing for the EUR in the low 1.22 area on the short-term chart. We spot resistance at 1.2260 and would expect the market to squeeze higher towards 1.2280/00 on a push through this point on the day”.
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