EUR/USD is drifting back somewhat after gains stalled just under 1.10 on Tuesday. Economists at Scotiabank analyze the pair’s outlook.
Scope for losses is limited
Market bets are – currently – that the Fed’s first blink is likely to be among major central banks looking to ease next year.
Weakness below minor support at 1.0945 may see spot ease a little more in the near term but underlying trend momentum remains EUR-bullish and scope for losses is limited.
Firmer support should develop around 1.09. Resistance is 1.1015/1.1020.
