EUR grinds cautiously higher for fifth day – Scotiabank

The Euro (EUR) is grinding slowly but surely higher, with the support of short-term spreads which are maintaining the recent compression in EZ/US short-term yields, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR crawls higher to test upper 1.16 area

"EUR gains on the crosses are supportive but markets may be reluctant to chase the EUR much higher ahead of key national and Eurozone Q3 GDP data Thursday amid concerns that German data may be weak (after a –0.3% result for Q2)."

"The EUR is up for a fifth day on the trot and while gains reflect a rejection of the 1.16 test last week, the lift is marginal and the EUR remains well within recent ranges. EUR gains extending through 1.1665/70 (100-day MA at 1.1664, coinciding with rough channel resistance off the September peak) may drive more strength in the EUR and a retest the recent peak at 1.1728."