Analysts at Scotiabank noted that the latest round of services and composite PMI’s were generally in line with expectations and euro area retail sales revisions were supportive.
Key Quotes:
“Bund spreads were widening modestly in response to Italian PM Conte’s first parliamentary speech.”
“Risk reversals suggest a continued moderation in the demand for protection against near-term EUR weakness (vs. both the USD and JPY).”
“We await a break off the one week range roughly bound between 1.1650 and 1.1750 and highlight the importance of last week’s doji completed just above 1.1650.”
“A bullish ‘morning star’ reversal would be completed on a close above the midpoint of the prior week’s range at 1.1707.”
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