EUR rebounds, helped by German GDP revision – Scotiabank

The Euro (EUR) remains well-supported on dips, with spot trading close to a cent above yesterday’s session low, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Bull break from consolidation is on the cards

"Final German GDP was revised nicely higher for Q1. Growth posted a 0.4% gain in the quarter—double the preliminary estimate and above market expectations. The data helped the EUR extend gains from the low 1.13 zone."

"Solid gains for the EUR this week are delivering a bullish break out from the downward consolidation channel (bull flag pattern) that has developed over the past month. Solidly EUR-bullish trend momentum signals suggest a significant push higher in spot may resume."

"There is a little congestion on the daily chart between 1.1380/1.1420 which may slow gains in the short run ahead of a retest of the 1.16 area (and possibly higher, potentially towards the 1.18/1.20 range)."