EUR/USD: headed to 1.0500? - Scotiabank

Analysts at Scotiabank explained that the Eurozone data this week have produced weaker than expected inflation data and disappointing activity indicators.

Key Quotes:

"The Eurozone manufacturing PMI miss today was modest – 51.7 against 51.8 in July and the same outcome expected for August – but the contrast with the bounce in UK data probably stings a bit and will likely lift expectations that the ECB may have to up the easing ante in the coming months. We think the growth/policy divergence outlook versus the US will drive EURUSD to 1.05 through year-end."