EUR quiet and consolidating last week’s recovery with support from spreads – Scotiabank

💡 DMK Insight

The Euro’s stability in the mid-1.15s could signal a brewing volatility ahead. With the Euro holding steady against the USD, traders should consider the implications of upcoming economic data releases and central bank announcements. If the Euro remains in this range, it might indicate a lack of conviction in either direction, but any unexpected news could trigger significant moves. Watch for key support around 1.1500 and resistance near 1.1600. If the Euro breaks these levels, it could lead to a stronger trend, impacting correlated assets like EUR/USD pairs and even commodities priced in Euros. However, there’s a flip side: the current calm might be misleading. Traders should be cautious of potential market reactions to geopolitical events or shifts in monetary policy, which could disrupt this consolidation phase. Keeping an eye on the economic calendar for any surprises is crucial for positioning. In the coming days, focus on the Euro’s ability to maintain its position. A decisive break above 1.1600 or below 1.1500 could set the stage for a more volatile trading environment.