EUR/USD: Potential for gains seen between 1.1680 and 1.1780 range – Scotiabank
Euro Strengthens Amid Positive Technical Indicators
According to Scotiabank analysts Shaun Osborne and Eric Theoret, the Euro continues to consolidate near the 1.17 mark, following sentiment-driven gains as geopolitical tensions ease. They point to favorable risk reversals, supportive yield differentials, and a decline in demand for downside protection as key factors.
The Euro is maintaining its upward momentum, entering Friday’s North American trading session with a slight 0.1% increase against the US dollar. The currency’s recent stabilization around 1.17 reflects a recovery fueled by improved market sentiment.
Improvement in risk reversals indicates waning concerns about Euro weakness, allowing investors to focus more on economic fundamentals.
Yield spreads are currently advantageous for the Euro, presenting potential for further gains in the short term.
Technical analysis shows a bullish outlook, with the Relative Strength Index (RSI) well above 50, signaling strong momentum after a sharp drop to oversold levels in mid-March.
Resistance is minimal before reaching 1.18, a price point that previously saw significant trading activity in late February. The anticipated trading range for the near term is between 1.1680 and 1.1780.
This article was produced with assistance from an AI tool and reviewed by an editor.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Avalanche Price Prediction November 2026: Can AVAX Break $9.03?
US CPI Exceeds Expectations Again, Waller's Warning Comes True! Wall Street Focuses on Whether December Rate Hike Will Be 25 or 50 Basis Points; "New Fed News Agency": Stop-and-Go Strategy Faces Test
The "New Federal Reserve Newsletter" pointed out that before the release of the CPI, Waller suggested the possibility of a 50-basis-point rate hike in December, and so far, no other Fed officials have publicly responded. In addition to a single 50-basis-point hike, the Fed may also choose to signal consecutive rate hikes in December and January. Wall Street generally believes that inflationary pressures remain stubborn, further strengthening the case for a rate hike in December, though a 50-basis-point increase is not a consensus. The market is concerned about whether the Fed will extend the tightening cycle.
CPI Deals a Blow to US Bonds! 2-Year Yield Surges Over 20 Basis Points Intraday, Gold and Silver Plunge
After the release of the CPI, traders began to expect a lower likelihood of a 50 basis point rate hike in December; this year’s Federal Reserve voting member Logan stated that a faster pace of rate hikes may be needed this winter, with at least two more 25 basis point hikes required before pausing. Subsequently, the rise in U.S. Treasury yields continued to widen, with the 10-year yield climbing back above 5.0% and rising more than 10 basis points intraday; spot gold once fell over 3%, while spot silver at one point dropped more than 4%.
Historical Data Reveals When XRP Could Peak This Cycle
Crypto prices
More
