EUR/USD bearish near-term – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne keeps the bearish outlook on EUR/USD in the near term horizon.

Key Quotes

“EURUSD gains look easily capped in the low/mid 1.06 area and we continue to see limited upside for the EUR while it is encumbered by wide, negative rate differentials versus the USD. EZ-US 2Y spreads remain well above 200bps”.

“Longer term technical signals remain bearish after the late Mar tumble from 1.09. Shorter -term price action looks soft too, with the EUR struggling to hold gains through the low 1.06 area in yesterday’s and today’s trade. Late morning European selling of EURUSD leaves a bearish outside hourly range signal on the intraday chart, which will reaffirm the cap on spot in the 1.0620/30 region and should see EUR losses extend – if only modestly – below 1.0595 intraday”