EURUSD: Modest to resume above 1.0005/10 towards 1.0050 – Scotiabank

EURUSD trades narrowly around parity. Economists at Scotiabank expect the pair to see modest gains toward 1.0050 on a move past 1.0005/10.

ECB policymakers stress inflation control 

“Comments from top ECB policymakers (Villeroy, Lagarde, Nagel) in the past day or so have stressed the importance of bringing inflation back under control as soon as possible – suggesting a broad consensus among hawks and the more centrist policy makers at least on the need for additional tightening being implemented quickly. This should help keep the EUR underpinned.”

“Modest EUR gains at least are likely to resume above 1.0005/10 towards 1.0050.” 

“Key short-term resistance is 1.0090 (late Oct high) and 1.0195 (early Sep high). Support is 0.9955/60.”