Support is 1.0950. Resistance is 1.1010/15.
Tight labour markets risk keeping wage growth elevated and ECB policymakers will have to stay on their toes for the foreseeable future. It remains too soon to sound the all-clear on ECB rate hikes, even if the bar to more tightening is a little higher after last week’s decision.
EUR/USD trades softer below 1.10. Economists at Scotiabank analyze the pair’s outlook.
Too soon to sound the all-clear on ECB rate hikes
The EUR looks soft below 1.10 and, after a couple of tests and failures at 1.1045/50 over the past few sessions, losses back under the figure area have tilted risks towards some drift – but perhaps not that much.