EUR/USD losing its edge on ECB turnaround? - Scotiabank

Analysts at Scotiabank explained that bullish EUR sentiment has softened in the aftermath of last week’s ECB.

Key Quotes:

"With a broad turn in risk reversals showing a moderation in the premium for protection against EUR strength across a range of time horizons. 

The latest ECB developments are centered on plans for the path of asset purchases after September. Media reports suggest that officials are looking to a ‘short taper’ of roughly three months."

"Recent support has been observed in the mid-1.23s however, and EUR has struggled to extend much below 1.2350. Near-term resistance is expected at 1.2480."