EUR/USD neutral/bearish near term – Scotiabank

Chief FX Strategist at Scotiabank Shaun Osborne noted spot remains neutral/bearish in the short term horizon.

Key Quotes

“EURUSD still looks fully priced for a Macron win, may be misjudging the risk of a moderately hawkish Fed message and should struggle to extend above the recent peaks with EZ-US 2Y spreads widening out to 200bps; we think EURUSD gains remain a fade”.

“There is little change in EURUSD’s short-term technical condition. The market continues to consolidate between 1.0850/1.0950 and while the short-term pattern of trade looks somewhat constructive, and broader trend momentum signals are aligned positively for the EUR, we still rather think the EUR needs to push on through 1.0950 in a sustained manner to “prove” that the rally has more legs”.