Created
: 2025.08.01
2025.08.01 20:52
The Euro (EUR) is quietly consolidating just above 1.14 against US Dollar (USD), trading in an exceptionally tight range for a second consecutive session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
"The euro area preliminary CPI for the month of July has offered a modest upside surprise, printing flat (vs. -0.1% exp) on a m/m basis and remaining unchanged at 2.0% y/y (vs. expectations of a marginal decline to 1.9%). Core was as expected and unchanged, at 2.3% y/y."
"The outlook for relative central bank policy remains a fundamental source of support for the EUR, as seen in the recovery of deeply negative German-U.S. yield spreads since late May. This week's pullback looks to have been driven by sentiment and positioning, rather than fundamentals, and we look to renewed medium-term EUR gains."
"This week's decline has been dramatic, sending the RSI to deeply oversold levels around 30. The multi-month trend remains bullish however, as we've observed notable support just above 1.14. We look to a near-term range bound between 1.1380 and 1.1480."
Created
: 2025.08.01
Last updated
: 2025.08.01
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