EUR a mid-performer in context of broad-based USD weakness – Scotiabank

The Euro (EUR) is entering Wednesday’s NA session with a decent 0.5% gain, a mid-performer among the G10 in the context of a broadly weaker US Dollar (USD), Scotiabank's Chief FX Strategist Shaun Osborne notes.

Markets ignoring dovish ECB comments

"Fundamental developments have been limited and there have been no high level data releases, leaving the focus squarely centered on media reports reinforcing the view of a currency-focused US administration and its preference for a weaker USD."

"Markets appear to be ignoring the continued dovishness from policymakers at the ECB, including Tuesday’s comments from GC member Villeroy leaning toward further rate cuts this summer."

"EUR/USD’s sharp bounce off of support around its 50 day MA (1.1095) appears to have cemented a near-term low, providing a broader range roughly bound between support in the mid/upper-1.10 area and resistance above 1.15. The decline in the RSI has stalled but the recovery has been minimal and its current reading around 50 implies a loss of momentum and a neutral level overall."