EUR/USD keeps its bearish note – Scotiabank

FX Strategists at Scotiabank have noted the pair’s outlook remains tilted to the bearish side in the short term.

Key Quotes

“Eurozone preliminary PMI data for July were better than expected but failed to provide any real lift for the EUR, which remains weighed down by the dovish lilt of yesterday’s ECB policy meeting and mounting expectations of additional policy steps in September”.

“EURUSD remains above 1.10 but the technical undertone for the market remains weak overall”.

“Intraday gains to the 1.1035/40 area were easily capped and intraday price moves have since adopted a bearish look”.

“Near term risks are geared towards a retest of the low 1.09 area still. Trend strength signals are aligned bearishly for the EUR, suggesting limited—and short-lived—counter-trend corrections and ongoing downside risks. Sell modest rallies”.