EUR Gains Slightly Against USD Despite Mixed Eurozone Data – Scotiabank
The Euro (EUR) rose by 0.2% against the US Dollar (USD) during early North American trading on Thursday. This gain followed a bullish reversal after earlier losses during the European session, according to Scotiabank FX strategists Shaun Osborne and Eric Theoret.
Eurozone Data Mixed, Political Risk in France Ignored by Markets
- Economic data from the Eurozone included weaker current account figures and stronger construction output.
- No economic data was released from France or Germany.
- Despite ongoing political uncertainty in France, EUR/USD remained stable.
- French 10-year bond yields (OATs) are now trading higher than Italian 10-year yields, reflecting increased political risk.
French Political Tensions Continue
- France’s new Prime Minister is struggling to secure support from the Socialist Party.
- National Rally leader Marine Le Pen called for President Macron to either dissolve parliament or resign.
Technical Outlook Positive
- The EUR/USD technical indicators show a bullish trend.
- RSI is near 60, above the neutral 50 level but below the overbought 70 threshold.
- EUR/USD recently hit a high just above 1.19.
- Resistance levels are seen at 1.20 and 1.2250.
- Support is expected around 1.1780, with near-term trading likely in the 1.1780–1.1880 range.