EUR stretches rebound to low 1.04s – Scotiabank

Weaker than expected PMIs from Spain, downward revisions to French data and a minor upgrade for the German Composite index saw the final Eurozone January Services index marked lower than the preliminary release at 51.3 (from 51.4) while the Composite Index was unchanged at 50.1, Scotiabank’s Chief FX Strategist Shaun Osborne notes.  

Tariff focus may soon shift to EU

“Details reflected firmer orders and new business but the outlook for sluggish growth and somewhat lower ECB interest rates remains. Monday’s ‘hammer’ low signal got some confirming support from additional gains in the EUR Tuesday and a further pick up in the EUR today is getting hard to ignore.” 

“The EUR has closed the gap on the short-term chart which was left open by the volatile market swings over the weekend which may pave the way for spot gains to extend to 1.0450/75 in the short run. Support is 1.0350/55.”