EUR/USD keeps the negative outlook near term – Scotiabank

FX Strategists at Scotiabank have reiterated the negative stance for the pair in the short term.

Key Quotes

“EURUSD is modestly firmer on the day, supported by stronger than expected Eurozone services, manufacturing and composite PMI data in October”.

“EZ-US 2Y rate spreads remain unchanged around 148bps, leaving the EUR little room to appreciate, however”.

“EURUSD closed weakly Friday and remains at high risk of more losses in the near-to-medium term. On the day, however, the minor rebound from 1.0860 overnight may extend modestly as weak shorts are squared up”.

“We think gains to the 1.0925/30 area should attract renewed selling interest, however. Look to fade minor gains”.