EUR retains bullish undertone – Scotiabank

The Euro (EUR) peaked around 1.0950 yesterday vs US Dollar (USD), helped in part by news of progress in Ukraine peace talks, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

EU announces retaliatory tariffs

"Spot drifted off the intraday high into the close and is trading little changed on the session. The EU’s retaliatory tariffs target EUR26bn worth of US imports, largely from Republican states in a replay of the EU’s 2018 tactics. The tariffs apply from April 1. The EUR retains a firm undertone overall and continues to trade a little below my FV estimate (1.0983) at present." 

"The EUR is consolidating. A minor peak may have formed at 1.0947 yesterday but the underlying trend higher in the EUR remains strong and scope for EUR losses may be limited, given the recent pattern of trade where strong advances have been followed by brief consolidations before gains resume. Look for support on EUR dips to the mid/upper 1.08s. Intraday support is 1.0840/45."