Euro (EUR) is weak, down 0.4% against the US Dollar (USD) and a mid-performer among the G10. Trade-related headlines continue to dominate and data releases have been limited, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
ECB comments remain dovish
“ECB Governing Council member Holzmann has added to this week’s run of dovish commentary, echoing other recent remarks about the disinflationary impact of US tariffs. Markets are pricing in 25bpts of easing for the next ECB policy decision on June 5 and are pricing a cumulative 65bpts of rate cuts by year end.”
“Technicals remain bullish given the clear sequence of higher lows and higher highs. The RSI is softening but still in bullish territory above 50. The near-term range is roughly bound between support in the upper 1.12s and resistance around 1.1550.”
- Gold keeps the red below $4,700 as USD extends gains ahead of US PPI
- British Pound: Political risk premium builds .
- Gold remains depressed near $4,700 on firmer USD; looks to US CPI for fresh impetus
- British Pound fills weekly bearish gap vs weaker JPY; GBP/JPY steadies below mid-213.00s
- Gold slides to $4,650 as USD benefits from Iran tensions and Fed hike bets
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