EUR/USD struggles regardless of hawkish ECB and rise in EZ yields. The pair might stay higher provided for now for 3 causes, in accordance with economists at Scotiabank.
Cautious on the EUR’s near-term outlook
“Positioning (markets have been lengthy EUR working into the ECB).”
“Threat aversion (increased yields globally are weighing on stocks and lifting the USD).”
“Technical concerns (the EUR was beginning to look overbought after its run increased).”
“We’re cautious on the EUR’s near-term outlook however stay bullish from an extended run viewpoint.”
