The euro is pushing higher against the US dollar in mid-1.15 territory, buoyed by positive economic fundamentals from the eurozone, according to Scotiabank strategists Shaun Osborne and Eric Theoret. The single currency’s gains are being underpinned by stronger-than-expected euro area GDP data and the region’s return to trade surplus, which is improving interest rate differentials in favor of European assets.
The widening yield spreads between European and US bonds are creating a supportive environment for EUR/USD appreciation as capital flows respond to relative economic performance. Traders are closely monitoring these diverging economic trajectories as the eurozone shows resilience while US growth dynamics shift. The technical picture shows the pair maintaining momentum above the 1.15 handle with modest but steady appreciation against the greenback.
FXnCO Insight
EUR/USD longs remain attractive on pullbacks as positive eurozone fundamentals and favorable rate spreads continue to support the pair’s upside bias against the dollar.
Source: FXStreet