EUR/USD: retains a firm undertone, expecting another slide in the dollar? - Scotiabank

Analysts at Scotiabank explained that the EUR/USD retains a firm undertone.

Key Quotes:

"The EUR retains a firm undertone, rising above 1.11, before easing slightly, amid heightened scrutiny of political developments in the US – which contrasts the recent easing of political risks in the Eurozone."

"EZ-US spreads are modestly narrower and while still substantial (-193bps), will not prevent a further slide in the USD in the event of more adverse headlines emerging from Washington. European data reflected still soft core inflation (+1.2% in final Apr data) and weak Mar construction output (-1.1%)."

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