The Euro (EUR) looks quite weak below 1.08, pressured by broader USD gains on the one hand and latent speculation that the ECB could cut rates aggressively in December, says Shaun Osborne, chief FX strategist at Scotiabank. .
EUR falls below 1.08
“Swaps are currently pricing in 35 basis points of easing risk. ECB President Lagarde is speaking (10ET) again in the US this morning, as are some of her Governing Council colleagues. Comments from “Yesterday, ECB monetary policymakers emphasized optionality in upcoming policy decisions, leaving the door open to an increase in the pace of easing, if necessary.”
“EUR/USD is trading at new lows for the downside this morning and pressing the last remaining supports below 1.08 (retracement support at 1.0795 and early August low at 1.0778). In my opinion, the EUR sell-off is overblown, with signals from intraday and daily oscillators highlighting an increasingly oversold situation.”
“However, momentum is king. Unless the EUR can stabilize and recover in the next day or two, the move lower could extend towards 1.05/1.06.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
