EUR/USd downside favoured on global outlook - Scotiabank

Analysts at Scotiabank offered a global outlook for weeks ahead.

Key Quotes:

"AMERICAS: Focus on Fed policy prospects and renewed gains in US economic growth will support the USD broadly in the coming months. The CAD and MXN will retain a defensive undertone despite the rebound in crude oil prices.

EUROPE: European currencies (and markets more generally) will remain sensitive to shifting sentiment ahead of the June 23rd EU referendum in the UK. Any relief rally for the GBP on a vote to stay is likely to be short-lived. EURUSD remains vulnerable to the downside.

ASIA-PACIFIC: Asian currencies will be influenced by the overall USD trend as well as idiosyncratic issues. We expect the CNY to ease gradually in the medium-term but the authorities will aim to avoid the uncertainty that previous bouts of softness have provoked."