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EUR/USD consolidates near the mid to upper 1.16s ahead of Sept. 10
Scotiabank said markets have nearly fully priced a 25 bp ECB hike, leaving limited room for extra near-term euro strength above fair value.
EUR/USD is consolidating in the mid to upper 1.16s after stronger German IFO and GDP data, according to Scotiabank strategists Shaun Osborne and Eric Theoret via FXStreet. The bank said the improved European outlook should bolster ECB confidence ahead of the September 10 meeting.
FXStreet reports that investors have nearly fully priced a 25 bp hike and further tightening, but Scotiabank sees little room for additional near-term euro strength as spot trades slightly above its fair value estimate.
The strategists noted resistance near 1.17, with no meaningful level ahead until 1.18. They pointed to near-term support at 1.1650 and 1.1600, and highlighted the 200-day moving average at 1.1632.
In FXStreet’s broader market wrap, EUR/USD was described as struggling to build recovery momentum and trading below 1.1700, while the US dollar held steady as investors weighed developments related to Iran and US consumer sentiment data.
Latest closeEUR/USD 1.157 ▲0.4%