The euro is showing renewed strength against the dollar, holding steady near 1.1576 as positive German economic data reinforces bullish sentiment, according to Scotiabank strategists Shaun Osborne and Eric Theoret. The latest ZEW survey from Germany revealed improving business expectations despite the country’s gradual recovery pace, providing fundamental support for the single currency. Technical indicators are confirming the positive outlook, with both intraday and daily momentum signals pointing to further upside potential. Scotiabank’s analysis suggests EUR/USD is targeting the mid-1.17 range in the near term as the bullish trend gains traction.
The development affects euro traders, forex brokers, and institutions with European exposure who may need to reassess positioning as momentum builds. The combination of improving German sentiment and strong technical setup could drive continued appreciation pressure on the pair.
FXnCO Insight
Traders should watch for a breakout above 1.16 as confirmation of the move toward mid-1.17s, with momentum indicators suggesting this bullish trend has room to run.
Source: FXStreet