FXStreet (Córdoba) - Camilla Sutton, analyst at Scotiabank commented that it is too early tojudge the impact of latest ECB policies and so the bank would probably use a cautious tone, leaving the EUR/USD comfortable between 1.3500 and 1.3750.
“Yesterday, EUR reached a multi‐month high, flirting with 1.37; however into the NA open it has softened, down 0.1%. Recent data has been mixed; the Eurozone manufacturing PMI suggest expansion but at a slower rate than expected; the flash CPI hints at a bottoming in disinflantionary pressures; while today’s PPI warns of ongoing disinflationary pressures”.
“We expect it is the above that will shape the tone at the ECB. Last month’s actions were dramatic but it is still early to judge the impact. Accordingly we expect a fairly cautious tone, but one the market is prepared for. For EUR this implies it should be comfortable trading in a broad range of 1.35 to 1.3750”.
“EUR/USD short‐term technicals: bullish—most studies warn of upside momentum; however a break and close below Monday’s open of 1.3647 would warn of fading upside pressure. Support lies at 1.3600; while resistance comes in at the 100‐day MA at 1.3740”.