Euro: ECB rate hike bets support gains against US Dollar - Scotiabank
Scotiabank analysts say the Euro (EUR) is firmer near 1.1240, slightly off intraday highs around 1.1265, with gains broadly tracking the softer US Dollar (USD) after the US midterms.
Scotiabank analysts report that the Euro (EUR) is trading near 1.1240, slightly below its intraday high of 1.1265. This gain is closely following a weaker US Dollar (USD) after the US midterms elections. The Eurozone Consumer Price Index (CPI) has been confirmed at 4.0% year-on-year, with several European Central Bank (ECB) officials indicating a potential rate hike in December.
Although technicians view the overall tone positively, they stress the importance of a clear break above 1.1275. The EUR has experienced gains, but they are slightly off the earlier highs around 1.1265. On Wednesday, AUD/USD reclaimed the area above 0.7000, while USD/JPY faced heavy selling pressure and dropped below 158.00 as the US Dollar approached a monthly low due to political uncertainty following early US midterm vote results.
Additionally, gold recovered from two consecutive daily declines, surpassing the $4,000 mark per troy ounce.
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