The Euro (EUR) has nudged greater to close 1.10 this morning regardless of indicators that even relative hawks on the ECB governing council could not oppose a price lower late this month, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
EUR to retest 1.10 breakdown level
“Whereas ECB Governor Holzmann commented yesterday that the combat in opposition to inflation was not over, Nagel stated earlier as we speak that he’s open to discussing a lower this month. Swaps are pricing in 24bps of easing threat for the seventeenth. A dovish-leaning ECB ought to assist curb the EUR rebound across the 1.10 zone.”
“Spot has rebounded to retest final week’s technical breakdown level at 1.10—the low between the August and September checks of 1.12 and the efficient double prime set off level. This must be agency resistance if the sample is to ship on its technical—measured transfer—promise of driving EUR/USD again to the low 1.08s within the subsequent few weeks.”
