EUR/USD grinds higher. Economists at Scotiabank analyze the pair’s outlook.

Little positive momentum on the short-term chart

Regaining 1.0725 lends the EUR a slightly better undertone in the near term and has some backing from a slight correction in EZ/US 2Y spreads.

EUR gains are generating a little positive momentum on the short-term chart – but longer-run studies remain resolutely bearish. 

Short-term gains back above 1.0725 (former support) should boost near-term recovery potential but perhaps only towards 1.0755/1.0760. 

Safer technical ground for the EUR remains relatively distant (above 1.0805/1.0810 at this point).