EUR soft but off lows – Scotiabank
Inflation data from France showed unchanged prices on the February month (versus expectations of a 0.2% rise), Scotiabank's Chief FX Strategist Shaun Osborne notes.
Trade/ tariff concerns continue to weigh on the EUR
"Trade/ tariff concerns continue to weigh on the EUR outlook, driving a deeper divergence with my estimated spot fair value of 1.0687, driven by improving real yields and significantly superior EZ equity market returns."
"Range parameters are being defined by the 100-day MA at 1.0517 and the 40-day MA at 1.0392 currently. Trend momentum signals are not especially strong on the intraday and daily oscillators, suggesting range trading may extend."
"But short-term price action does lean a little more bearish after repeated EUR failures in the low 1.05 zone this month and the loss of support in the low 1.04 zone, however. Risks may be tilted towards a push to 1.02 in the short run."
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