EUR seeing minor pullback from recent multi-year high – Scotiabank

The Euro (EUR) is soft, down a modest 0.2% against the US Dollar (USD) with a minor pullback from Tuesday’s fresh multi-year high, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

ECB comments neutral

"The latest data have included a slight rise in the euro area unemployment rate (6.3% vs. 6.2% exp. & prev.) and comments from the ECB have maintained a neutral tone with GC member Rehn highlighting two way risks to inflation. ECB GC member Centeno’s comments also touched upon the EUR, highlighting the benefits of a stronger currency as a benefit and source of attraction for global investors."

"The multi-month trend is bullish and the momentum indicators have been confirming but the RSI is pulling back from its recent peaks in overbought territory (matching recent exhaustion peaks above the 70 threshold, in the mid-70s). We look to near-term support in the lower 1.17s and resistance in the lower 1.18s."