Underlying trends remain EUR-bullish – Scotiabank

The Euro (EUR) is steady on the session and looks quite comfortable trading on a 1.10 handle.

Minor dips to the low/mid 1.09s possible for EUR

“There were no Eurozone data reports this morning and spot has mostly flatlined after drifting back from yesterday’s intraday high. Real and nominal EZ/US rate spreads are EUR-supportive and the EUR appears fundamentally underpinned by the compression in (still negative) yield spreads in recent weeks (well enough for gains to stretch to the mid/upper 1.10s).”

“Spot gains are consolidating in the short run. EUR losses from the intraday high yesterday are not enough at this point to suggest that a deeper correction is likely. Underlying trends remain EUR-bullish, with spot gains supported by an alignment of bullish trend oscillators on the intraday, daily and weekly DMIs.”

“This should also imply firm support for the EUR on minor dips to the low/mid 1.09s.”