#eur/usd

The post Euro: Upside bias against US Dollar as ECB repriced – Scotiabank appeared on BitcoinEthereumNews.com. Scotiabank strategists Shaun Osborne and Eric Theoret report the Euro (EUR) is slightly softer versus the US Dollar (USD) but supported by a sharp recovery in yield spreads and stronger German industrial production. Renewed hawkishness from European Central Bank (ECB) policymakers is lifting Euro area rate expectations. They see near-term upside for EUR/USD, with technicals pointing to a drift toward 1.15 within a 1.1400–1.1500 range and limited resistance before 1.1580. Hawkish ECB supports Euro “Bearish/neutral – the recovery in the RSI is important, reflecting a clear fade in bearish momentum and a drift back toward the neutral threshold around 50. The near-term balance of risk appears to favor gains and a drift toward 1.15 and we note the absence of any material resistance ahead of 1.1580. The medium-term trend is flat, and we look to a near-term range bound between 1.1400

The post Euro holds steady as traders assess Fed and ECB interest rate paths appeared on BitcoinEthereumNews.com. EUR/USD trades in a narrow range on Tuesday as traders await greater clarity on the Federal Reserve’s (Fed) and European Central Bank’s (ECB) interest rate paths. At the time of writing, EUR/USD is trading around 1.1436, little changed on the day. Inflation risks have moderated as Oil prices have fully unwound their US-Iran war-driven rally following last month’s interim peace agreement, which reopened shipping through the Strait of Hormuz. However, policymakers on both sides of the Atlantic continue to signal that monetary policy is likely to remain restrictive in the coming months, with inflation running above their respective 2% targets. ECB Governing Council member Fabio Panetta said on Tuesday that the “outlook remains fragile,” adding that “upside inflation and downside growth risks remain.” ECB Governing Council member Pierre Wunsch said on Monday that “it seems that

The post Euro: ECB support limited by spreads – NBC appeared on BitcoinEthereumNews.com. National Bank of Canada ’s (NBC) Stéfane Marion and Kyle Dahms note the Euro (EUR) fell toward 1.13 in June despite a more hawkish European Central Bank (ECB), underscoring that EUR/USD remains driven by relative rates. Widening 2-year Bund–Treasury spreads weigh on the pair, while speculative positioning is now more balanced. They target EUR/USD at 1.18 by year-end, assuming broad Dollar moderation as Fed repricing matures. Euro needs Dollar relief “The euro has weakened despite a more hawkish ECB, reinforcing that EUR/USD remains mostly a relative-rates story. Short-term spreads have moved against the common currency, while softer inflation reduces the need for a more aggressive ECB response. Still, positioning is now less stretched than a quarter ago.” “In the near term, the euro still needs dollar relief to reach our year-end target.” “Short-term yield spreads remain the clearest headwind. The