Scotia on the euro, like it higher.
Citing as reasoning that ECB policy setters will remain in tightening mode due to
- relatively resilient growth in the eurozone
- stubborn inflation expectations, with the European Central Bank survey for October showing a rise in 12 monthm inflation expectations to 5.4%, from 5.1% previously
Scotia point to 50 bp priced in for the meeting due next week, December 15. This will underpin EUR
Also:
- Underlying trend signals are tilting bullish, helping to limit downdrafts for the EUR,p[providing support on weakness
As for levels:
- Support 1.0430/35
- Resistance above 1.0525 is 1.0595/00
