Forex Flash: EUR/USD expected to end September closer to 1.20 than 1.25 – Scotiabank

FXstreet.com (Córdoba) - The euro weakened on Thursday but continues to trade within its narrow 124 point six-session range between 1.2466 and 1.2590.

Camilla Sutton, analyst at Scotiabank notes that, "supporting EUR are hopes that next week's event risk proves positive, expectation that the FOMC will remain dovish, a hesitancy to be short ahead of next week's calendar, Eurobond supportive comments from French PM Hollande and a suggestion from Premier Wen that China is still willing to invest in the European bond market", while data has been mixed, with rising inflation a key concern.

"We expect September to be volatile for EUR, but that markets grow impatient with the timeline for a European plan and growth slows further, which ultimately weighs on the currency", saud the analyst. "We expect EUR to end September closer to 1.20 than 1.25".