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EURO TRADES HIGHER ON THE DAY, EYEING 1.0750 – SCOTIABANK

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The Euro (EUR) is modestly higher on Tuesday's session, reflecting a mild narrowing in 10Y OAT/Bund spreads. The gap remains relatively significant (75bps), however, as tensions in the Eurozone persist, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

Push above 1.0750 to form solid base for EUR/USD

"Germany’s ZEW survey for June reflected a smaller than forecast improvement in investor expectations, rising to 47.5, from May’s 47.1. Germany’s growth momentum is improving slowly."

"Spot gains on Monday left a bullish imprint on the daily chart via a strong, piercing line signal on the daily candle chart. The EUR has drifted back somewhat from earlier gains so far today but the EUR’s rise from the upper 1.06 area suggests a potential low/reversal in place."

"The EUR remains some distance still from technically “safe” ground but gains through 1.0750 would be supportive of a base developing here and give the EUR a bit more lift. Support is 1.0665/75."


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