EUR/USD: Markets are reluctant perhaps to push FX too hard – Scotiabank

The Euro (EUR) has settled into a tight trading range around the 1.03 point through the latter part of this week, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

EUR consolidates in tight range around 1.03

“Markets are reluctant perhaps to push FX too hard either way ahead of the inauguration. French Industrial Production rose a stronger than expected 0.2% in November while Spanish Industrial Production dropped 0.8% in the month. The data had no tangible impact on spot, however.

“The EUR has managed to stabilize over the week, blunting the USD bull trend for the moment. Trend momentum remains EUR-negative, but the EUR may get a temporary reprieve from somewhat oversold conditions on the longer run studies.”

“Broader trends remain bearish though and unless spot can regain 1.0450 and extend gains through that point in a sustained manner, technical prospects remain dim. EUR support is 1.0200/25.”