EUR strengthens as policymakers speak to end of ECB easing cycle – Scotiabank

Euro (EUR) is up 0.5% vs. the US Dollar (USD) and a mid-performer among the G10 in an environment of broad-based USD weakness, Scotiabank's Chief FX Strategist Shaun Osborne notes.

EUR/USD is climbing but has not yet broken to fresh highs

"The focus on government bond markets and US fiscal developments is likely providing the EUR with some relative strength as market participants also consider the shifting messaging from the ECB. Policymakers remain dovish but appear to be focusing on the end of the easing cycle. Fundamentally, the highlight for EUR this week will be Thursday’s release of preliminary PMI’s, as well as Germany’s IFO business sentiment release."

"EUR/USD is climbing but has not yet broken to fresh highs. The RSI is bullish but still well below 70, leaving ample space for further near-term gains. We look to possible near-term resistance around 1.14 ahead of the recent highs in the upper-1.15s. Support is expected closer to 1.11."