EUR/USD: Underlying trends remain EUR-bullish – Scotiabank

FXStreet Insights Team FXStreet

The Euro (EUR) is steady on the session and looks quite comfortable trading on a 1.10 handle.

Minor dips to the low/mid 1.09s possible for EUR

“There were no Eurozone data reports this morning and spot has mostly flatlined after drifting back from yesterday’s intraday high. Real and nominal EZ/US rate spreads are EUR-supportive and the EUR appears fundamentally underpinned by the compression in (still negative) yield spreads in recent weeks (well enough for gains to stretch to the mid/upper 1.10s).”

“Spot gains are consolidating in the short run. EUR losses from the intraday high yesterday are not enough at this point to suggest that a deeper correction is likely. Underlying trends remain EUR-bullish, with spot gains supported by an alignment of bullish trend oscillators on the intraday, daily and weekly DMIs.”

“This should also imply firm support for the EUR on minor dips to the low/mid 1.09s.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD clings to moderate gains near 1.3400

EUR/USD holds steady above 1.1400 ahead of US data

Gold struggles to build on Tuesday's gains, retreats toward $4,000

Bitcoin, Ethereum, and Ripple show tentative recovery as key technical levels hold

Bitcoin, Ethereum and Ripple trade with a mild positive bias on Wednesday as sentiment improves across the cryptocurrency market. BTC is testing its 50-day Exponential Moving Average, ETH has broken above a key resistance level at $1,800, while XRP has found support around a key level.

BoC set to keep interest rates steady for sixth consecutive meeting

The Bank of Canada is widely expected to keep its policy rate unchanged at 2.25% on Wednesday. The central bank will announce its policy decision at 13:45 GM. This would be the sixth consecutive event with the central bank keeping its hand steady. The BoC left its policy rate unchanged at 2.25% last month, as widely anticipated.

-0.4%: Why the biggest CPI drop since 2020 couldn't buy back a single cut

The June CPI fell 0.4% on the month, the largest one-month decline since April 2020, dragging the annual rate to 3.5% from May's 4.2% and snapping a three-month acceleration streak. Core prices went nowhere, flat on the month and down to 2.6% YoY, both under consensus.