EUR/USD further upside likely – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, sees room for an extension of the pair’s upside in the short term.

Key Quotes

“Sentiment and relative central bank policy are providing support on shifting political risks in France following last night’s debate and expectations for the ECB as market participants consider policymakers’ comments regarding the sequence of normalization in the context of the negative interest rate policy. The 2Y Germany U.S. yield spread has narrowed nearly 20bpts since the March 9 ECB meeting, delivering considerable support to EUR. We view the shift in tone as being premature and continue to highlight Draghi’s focus on ‘subdued’ measures of underlying inflation. The sentiment was echoed by Bundesbank President Weidmann’s comments from Monday as he focused on ‘weak’ price pressure”.

“Momentum signals are bullish, DMI’s are confirming, and short-term MA’s are bullishly aligned. EUR appears set to reach the 50% retracement of the post-election drop (1.0821) and we highlight the absence of major resistance ahead of the 200 day MA at 1.0891”.


1 Week
Avg Forecast 1.0763
  • 50% Bullish
  • 42% Bearish
  • 8% Sideways
Bias Bullish
1 Month
Avg Forecast 1.0650
  • 30% Bullish
  • 60% Bearish
  • 10% Sideways
Bias Bearish
1 Quarter
Avg Forecast 1.0558
  • 15% Bullish
  • 65% Bearish
  • 20% Sideways
Bias Bearish


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.