The euro (EUR) is stable around the 1.04 area, as noted by Sean Osborne, chief FX strategist at Scotiabank.
The euro is stable around 1.04
ECB Governor Escrivá previously indicated that the central bank needs to shift to a neutral stance in the coming months. However, Governor Holzmann remains cautious about ECB easing in the near term, suggesting that it needs “good arguments.” ” to support the interest rate cut next week. President Lagarde commented that the central bank will maintain the “thoughtful” easing steps yesterday.
“Swaps continue to be priced at a 1/4 pip discount for next week’s meeting. Euro holds tight intraday range after another test and failure of bounce resistance at 1.0422 yesterday. The 1.04 low area has been a block of Euro bounces since December but the level is… The chart is more important now as 1.0422 represents an initial retracement (23.6%) of the euro’s decline from 1.12.”
“A clear push through the lower 1.04 area would extend immediate gains towards 1.05/1.06. Support is 1.0350.”