EUR/USD: Gains are capped in low 1.05s – Scotiabank

The EUR remains largely range-bound in rather featureless trade.Spanish core CPI fell to 2.1% in February, the lowest since December 2021, hinting at some potential progress in Eurozone inflation, Scotiabank's Chief FX Strategist Shaun Osborne notes.  

EUR holds range on the day

"Still, trends in the EUR are likely to be muted while it remains unclear what sort of tariff regime the EU is facing from the US. More range trading around 1.05 is likely in the short run. The EUR may get some modest support from cross flows where EUR/JPY appears to be rebounding firmly—again—from the upper 155 area."

"EUR gains remained capped in the low 1.05 area (100-day MA at 1.0523) but the single currency enjoys the support of bullish, if weak, trend momentum on the short-term oscillators which should keep the market supported on minor dips for now. Support is 1.0450 and 1.0390/00."

"Sustained gains through the low/mid 1.05 resistance zone should pave the way for a push higher to the 1.0650/1.0750 range."