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EUR retains a soft undertone – Scotiabank

Euro (EUR) price action reflects the firmer tone in the USD overall as well as some re-widening in EZ/US short-term spreads, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

EUR drops to 1.05

“Fair value has slipped a little to 1.0499 today, suggesting the EUR is trading about where it should be, based on short-term factors.”

“A fourth day of losses in the EUR is starting to see a shift in short-term trend momentum back in the USD’s favour—to align with EUR-bearish signals on the daily and weekly DMI oscillators. EURUSD is pressuring supports in the upper 1.04s and risks easing further to 1.0430/60 range in the short run. Resistance is 1.0530.”

USD/CHF eases from 0.8850 highs heading on the US inflation release

The US Dollar is trading higher for the fourth consecutive day although bulls have been halted at 0.8850 with investors awaiting the reading of November’s US CPI figures.
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GBP/USD: Holds recent trading range above 1.27 for now – Scotiabank

The Pound Sterling (GBP) is softer, in line with its major currency peers, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
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