EUR/USD could slip back to 1.2310//1.2300 – Scotiabank

FX Strategists at Scotiabank remain neutral/bearish on the pair and sees the likeliness of a visit to the 1.2310/1.2300 area.

Key Quotes

“Markets were not really expecting any significant shift in the ECB’s stance and are even less expectant now – meaning that any mildly hawkish talk today is perhaps the main risk for the EUR (dropping reference to do more QE if conditions warrant it)”.

“EURUSD softened modestly yesterday, much as expected, after reversing from the mid 1.24 area. Loss of short term trend support saw losses extend overnight. We think the soft tone may steady around 1.2355/60 support but loss of support in the mid 1.23s will open the door for a slide towards 1.2300/10. Broadly, we think the 1.22/1.25 range persists for now”.