EUR supported by broader tone – Scotiabank

The Euro (EUR) is up a modest 0.2% against the US Dollar (USD) and attempting stabilization in the mid/upper-1.16s, supported by an improvement in the broader market’s mood, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR shows no reaction to ZEW sentiment surprise

"The ZEW investor sentiment figures came in better than expected but offered no immediate reaction in the currency."

"Trade tensions remain a key source of uncertainty but market participants appear to be finding reassurance in both sides’ willingness to continue negotiations. Short-term rates markets are unchanged and still pricing around 25bpts of easing by year end. ECB communication has been unequivocally neutral and markets are pricing no change for next Thursday’s meeting. "

"The EUR’s medium-term trend remains bullish but the latest pullback has brought its momentum indicators back to neutral. We note the continued importance of the 50 day MA (1.1479) in terms of offering medium-term support, and see the near-term range roughly bound between 1.1650 support and 1.1720 resistance."