EUR weak within range near high – Scotiabank

FXStreet Insights Team FXStreet

Euro (EUR) is weak, down 0.4% against the US Dollar (USD) and a mid-performer among the G10. Trade-related headlines continue to dominate and data releases have been limited, Scotiabank's Chief FX Strategist Shaun Osborne notes.

ECB comments remain dovish

"ECB Governing Council member Holzmann has added to this week’s run of dovish commentary, echoing other recent remarks about the disinflationary impact of US tariffs. Markets are pricing in 25bpts of easing for the next ECB policy decision on June 5 and are pricing a cumulative 65bpts of rate cuts by year end."

"Technicals remain bullish given the clear sequence of higher lows and higher highs. The RSI is softening but still in bullish territory above 50. The near-term range is roughly bound between support in the upper 1.12s and resistance around 1.1550."

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.