EUR/USD: Softer US Core PCE data could provide some lift – Scotiabank

EUR/USD holds in tight range. Economists at Scotiabank analyze the pair’s outlook.

Sell-off has stalled

Softer US Core PCE data could provide some lift for spot intraday but more sustained EUR gains will have to await some compression in still significant yield differentials.

Modest gains from support in the low 1.05 area on Thursday give the short-term chart a slightly positive tinge but more gains are needed today to give a bit more confidence that the rebound can extent.

The best we can say from a technical point of view is that the EUR sell-off has stalled. 

Support is 1.0520. Resistance is 1.0570/1.0580.