Analysts at Scotiabank noted that EUR is extending is recent consolidation for a fourth consecutive session and trading just below a pair of key technical/psychological levels.
Key Quotes:
“Fundamental releases have been limited and Italian BTP yields have fallen in response to the latest comments from Finance Minister Tria.”
“ECB rate expectations are firming modestly and pricing just over 10bpts of tightening by September 2019. German-U.S. yield spreads are also showing signs of stabilization as risk reversals suggest a continued fade in the premium for protection against EUR weakness.”
“EURUSD short-term technicals: neutral-bullish””EUR has yet to break out of its four session consolidation range roughly bound between the lower 1.17s and lower 1.18s.”
“Momentum indicators are bullish and the DMI’s are confirming along with the short-term MA’s.”
“We continue to highlight the importance of the 38.2% retracement level of the February-August decline at 1.1780 as well as the psychologically important 1.1800 level.”
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