EUR/USD: Firms but holds range – Scotiabank

The Euro (EUR) has firmed a little in quiet trade, Scotiabank's Chief FX Strategist Shaun Osborne notes.

ECB hawks push back on rate cut bets

"ECB policy hawks continue to push back against the idea that a January rate cut is a done deal—”not a foregone conclusion”, according to Governor Holzmann reiterated in an interview overnight. Note Holzmann and Vujcic speak again this morning. Swaps rather reflect a high degree of certainty that the central bank will ease rates on the 30th, with 25bps fully priced in, however."

"Spot has picked up a little overnight but trading is holding within the range that developed through the latter part of last week. EUR-bullish signals on the daily chart remain intact but spot needs to make some deeper headway—above 1.0350—to develop more upside momentum. Support is 1.0260."