The euro (EUR) is trading quietly within a narrow range, entering Monday’s North American session largely unchanged from Friday’s close, according to Scotiabank’s chief FX strategists Shaun Osborne and Eric Theoret.
Markets calm ahead of ECB meeting
All attention is on Thursday’s European Central Bank (ECB) decision, where a hold is widely expected. Market participants will be closely watching the tone of the statement, press conference, and any updates to the ECB’s forecasts.
Central bank policy continues to support euro
The outlook for relative central bank policy remains a key driver behind Scotiabank’s bullish EUR forecast. Rising yield spreads provide additional fundamental support. Near-term risk stems from the upcoming French confidence vote, although the market impact of recent political turbulence has reportedly eased over the past week.
Technicals point to bullish momentum
Technically, EUR/USD looks bullish following Friday’s breakout above descending resistance from July highs. The relative strength index (RSI) sits in the mid-to-upper 50s, confirming the bullish bias. Analysts see little major resistance before 1.18, with a near-term range projected between 1.1680 and 1.1780.
