Sean Osborne, chief FX strategist at Scotiabank, noted that the euro (EUR) rose slightly in quiet trading.
ECB hawks are backing off bets on interest rate cuts
ECB policy hawks continue to oppose the idea that a January rate cut is a done deal — “not a foregone conclusion,” Governor Holzmann reiterated in an overnight interview. Note that Holzmann and Vuytic spoke again this morning. The swap rather reflects “a high degree of certainty that the central bank will ease interest rates on the 30th of this month, with the full 25 basis points priced in.”
“The spot price rose slightly overnight but trading remains firmly within the range that developed over the latter part of last week. The bullish signals for the euro on the daily chart remain intact but the spot price needs to make some deeper progress – above 1.0350 – to develop further.” Bullish momentum is 1.0260.”
