EUR/USD: There seems just as little interest in chasing the Euro higher – Scotiabank

EUR/USD holds range around 1.0900 in quiet trade. Economists at Scotiabank analyze the pair’s outlook.

The market undertone remains soft

Spot looked vulnerable to more downside movement earlier in the week as the market (twice) tested the mid-1.0800 area but the lack of follow through selling pressure has averted more EUR losses for now, at least. The market undertone remains soft, however, with short-term trend oscillators and longer run price signal leaning EUR-negative. 

EUR gains through 1.0910/1.0920 might give the market a short-term lift but there seems just as little interest in chasing the EUR higher as there was to lean on the downside earlier this week.