Spot continues to consolidate in the low 1.08s, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Germany approves spending plans
“EU leaders failed to reach an agreement on a EUR5bn aid package for Ukraine last night, weighing on EUR sentiment somewhat. However, Germany’s upper house supported the incoming government’s plans to boost spending dramatically, sealing final approval for the aggressive fiscal expansion.”
“EUR losses since the middle of the week leave spot looking soft but support in the low 1.08 region is holding and a clear push under 1.0820 is perhaps needed to lift negative momentum. A break lower may see spot losses extend to the 1.0720/30 area. (200-day MA at 1.0726 currently). Resistance remains 1.0950”